Suppose You Found a $100 Bill That Was Lost for Many

question 19

Multiple Choice

Suppose you found a $100 bill that was lost for many years under your grandmother's mattress.If the banking system has a cash drain of 5%,its target reserve ratio is 20%,and all excess reserves were lent out,your new deposit of the $100 bill would lead to an eventual expansion of the money supply of

• A)$20.
• B)$25.
• C)$200.
• D)$400.
• E)$500.

---

Definitions:

Ethnicity

The classification of people based on shared cultural, ancestral, language, or social traits.

Measure

To ascertain the size, amount, or degree of something typically with the use of instruments or tools designed for such purposes.

Acculturate

To adapt to or acquire the cultural traits or social patterns of another group.

Reside

To live, dwell, or inhabit a particular place or environment.