Given a Required Reserve Ratio of 0

question 79

Multiple Choice

Given a required reserve ratio of 0.25,what is the maximum amount by which the money supply can increase in response to a $200 million increase in excess reserves for the whole banking system?

• A)$200 million.
• B)$250 million.
• C)$500 million.
• D)$800 million.

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Definitions:

Box Plot

A graphical representation of data that displays the distribution's five-number summary: minimum, first quartile, median, third quartile, and maximum.

Median

The value separating the higher half from the lower half of a data sample, a population, or a probability distribution.

Percentiles

Measures that divide a data set into 100 equal parts, indicating the percentage of data below a certain value.

Quintiles

A statistical measure that divides a population or dataset into five equal groups or parts, according to a particular variable.