Use the Following Example to Answer the Following Questions

question 8

Multiple Choice

Use the following example to answer the following questions:
Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.Assume that this institution has a required reserve ratio of 25 percent.
-As a result of this deposit,by how much will the bank's excess reserves increase?

• A) $0
• B) $18,750
• C) $25,000
• D) $31,250
• E) $100,000

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Definitions:

Formal Element

Structured or officially sanctioned components of an organization or system, including rules, policies, and organizational structures.

Communication Channels

The mediums through which information is transmitted from one entity to another, including verbal, non-verbal, written, and digital forms.

Collective Well-Being

The overall health, happiness, and prosperity of a group or community, as opposed to just individuals.

Government Sector

Refers to the portion of the economy consisting of government agencies and public services, excluding private companies and businesses.