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

question 118

Multiple Choice

In the simple deposit expansion model,if the required reserve ratio is 20 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:

Glucose

A simple sugar and a key source of energy for living organisms, also a vital component of many carbohydrates.

Deamination

A biochemical process where amino groups are removed from amino acids, typically resulting in the creation of ammonia and keto acids.

Urea

A nitrogenous waste compound produced in the liver, resulting from protein metabolism, and excreted in the urine.

Acidic Blood

Blood with a pH level below the neutral pH of 7.0, often indicating a medical condition or response to environmental stress.