Table 9-6: Deposit Expansion Stages

question 184

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 value of $B in stage 1?

• A) $100
• B) $200
• C) $600
• D) $800

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Definitions:

Association Areas

Regions of the brain that integrate different types of information from sensory and motor areas to perform complex cognitive tasks.

Parietal

Relating to the parietal lobes of the brain, which are involved in processing sensory information such as touch, temperature, and body position.

Temporal

Relating to time, or the sequential order in which events occur.

Occipital

Related to the occipital lobe of the brain, which mainly handles the processing of visual information.