If the Banking System Has Demand Deposits of $100,000,total Reserves

question 16

Multiple Choice

If the banking system has demand deposits of $100,000,total reserves equal to $15,000,and a required reserve ratio of 10 percent,the banking system can increase the volume of loans by a maximum of

• A)$5,000.
• B)$50,000.
• C)$85,000.
• D)$100,000.

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Definitions:

Little Hans

A case study by Sigmund Freud involving the analysis of a 5-year-old boy's fear of horses, which Freud interpreted as a manifestation of the Oedipus complex.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Fear of Being Bitten

An anxiety disorder characterized by an irrational and excessive fear of being bitten by animals or humans.