Suppose a Banking System Has a Required Reserve Ratio of 0.15.How

question 9

Multiple Choice

Suppose a banking system has a required reserve ratio of 0.15.How much can the money supply increase in response to a $1 billion increase in excess reserves for the whole banking system?

• A)$1 billion.
• B)$150 million.
• C)$15 billion.
• D)$6.67 billion.

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Definitions:

Expert Power

Expert power is the capacity to influence other people because of specialised knowledge.

Referent Power

A form of influence based on the leader's personal traits, where followers identify with and want to emulate the leader.

Personal Power

The ability of an individual to influence others or events based on personal attributes or knowledge.

Visionary Leadership

Visionary leadership brings to the situation a clear sense of the future and an understanding of how to get there.