In the Simple Deposit Expansion Model,if the Fed Extends a $100

question 196

Multiple Choice

In the simple deposit expansion model,if the Fed extends a $100 discount loan to a bank that previously had no excess reserves,deposits in the banking system can potentially increase by

• A)$10.
• B)$100.
• C)$100 times the reciprocal of the required reserve ratio.
• D)$100 times the required reserve ratio.

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Definitions:

Transvestic Disorder

The recurrence and intense cross-dressing or thoughts of cross-dressing over at least 6 months accompanied with significant emotional distress that impairs social or interpersonal functioning.

Cross-dressing

The act of wearing clothes traditionally worn by the opposite sex.

Emotional Distress

A state of mental suffering or anguish induced by stressors or adverse situations, often leading to symptoms like anxiety or depression.

Necrophilia

is a sexual attraction to corpses, considered a paraphilic disorder by psychiatric standards.