Table 9-6: Deposit Expansion Stages

question 221

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 the deposit multiplier?

• A) 0.1
• B) 0.2
• C) 1
• D) 5

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Definitions:

Hyperventilating

Breathing at an abnormally rapid rate, leading to a decrease in carbon dioxide levels in the blood.

Ventilation

The process of providing fresh air to a space or the exchange of air to remove stale air, crucial for maintaining healthy indoor environments.

Lungs

Organs located in the chest on either side of the heart that enable the respiration process by exchanging oxygen and carbon dioxide.

Airway Obstruction

A blockage in any part of the airway that impedes normal breathing, potentially life-threatening if not promptly treated.