If the Banking System Has Demand Deposits of $200,000,total Reserves

question 108

Multiple Choice

If the banking system has demand deposits of $200,000,total reserves equal to $60,000,and a required reserve ratio of 25 percent,the banking system can increase the volume of loans by a maximum of

• A)$40,000.
• B)$60,000.
• C)$10,000.
• D)$200,000.

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Definitions:

Authentic Interactions

Genuine and sincere exchanges or engagements between individuals, characterized by honesty and a true representation of oneself.

Responding

The act of replying or reacting to something.

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An individual who conveys information or expresses ideas through verbal communication in various settings.

Positive Reinforcement

A method in behavior theory where the introduction of a rewarding stimulus following a desired behavior increases the likelihood of it happening again.