Suppose the Required Reserve Ratio Is 10 Percent, and Banks

question 33

Multiple Choice

Suppose the required reserve ratio is 10 percent, and banks hold no excess reserves. If an individual withdraws $20 million from Bank Y, then the amount of reserves held by Bank Y will

• A)decrease by $20 million.
• B)decrease by $2 million.
• C)increase by $2 million.
• D)increase by $20 million.
• E)not change.

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Definitions:

Pedophilia

A psychiatric disorder characterized by an adult's sexual attraction towards prepubescent children.

Erectile Disorder

A condition characterized by the consistent inability to attain or maintain an erection sufficient for satisfactory sexual performance.

Paraphilias

Atypical sexual interests that may involve non-consenting partners, the experience of distress, or entail risk of harm to oneself or others.

Sexual Dysfunctions

Disorders that involve disruptions in any aspect of sexual response, interfering with sexual satisfaction and performance.