Table 9-6: Deposit Expansion Stages

question 104

Multiple Choice

Table 9-6: Deposit Expansion Stages
In Table 9-6, assume that banks loan out 100% of their excess banking reserves, there are no cash withdrawals, and all loan proceeds are spent. Figures have been rounded up to the nearest whole number.
-Refer to Table 9-6. What is the required reserve ratio?

• A) 5%
• B) 10%
• C) 20%
• D) 25%

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Definitions:

Income Inequality

The unequal distribution of income among individuals or groups within a society or between countries.

Growing Income Inequality

The increasing gap in economic resources and wealth between the richest and the poorest individuals in a society or globally.

Labor Demand

Refers to the total hours that employers want to hire at a given wage rate.

Highly Skilled Workers

Individuals with extensive training and expertise in particular fields, often requiring advanced education or specialized experience.