In the Simple Deposit Expansion Model,if the Required Reserve Ratio

question 126

Multiple Choice

In the simple deposit expansion model,if the required reserve ratio is 10 percent and the Fed increases reserves by $100,checkable deposits can potentially expand by

• A)$100.
• B)$250.
• C)$500.
• D)$1,000.

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Definitions:

Homo Habilis

an early human species known for tool use, existing approximately 2.1 to 1.5 million years ago in Africa.

Hominids

A family of primates that includes humans and their extinct ancestors, characterized by bipedalism, large brain size, and complex behaviors.

Skeletal Differences

Variations in the structure or composition of the skeletal system among different organisms or individuals, often used in the study of evolutionary biology and anthropology.

Hominoids

A group that includes all modern and extinct Great Apes and humans, characterized by larger brains, no tail, and an upright posture.