Suppose a Banking System Has $100,000 in Deposits,a Required Reserve

question 22

Multiple Choice

Suppose a banking system has $100,000 in deposits,a required reserve ratio of 25 percent,and total bank reserves for the whole system of $25,000.Then the potential increase in deposit creation for the whole system is equal to

• A)$0.
• B)$25,000.
• C)$50,000.
• D)$100,000.

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Definitions:

Agency

The ability of the individual to act freely and independently.

Free Will

The ability of individuals to make choices that are not determined by prior causes or by divine intervention.

Stereotyping

Judging others based on preconceived generalizations about groups or categories of people.

Symbolic Interactionist

A perspective in sociology that emphasizes the role of symbols and language as core elements of all human interaction.