If the Target Reserve Ratio in the Banking System Is

question 104

Multiple Choice

If the target reserve ratio in the banking system is 20%,there is no cash drain,and there are no excess reserves,a new deposit of $1 will lead to an eventual expansion of the money supply of

• A)$0.20.
• B)$1.20.
• C)$2.00.
• D)$5.00.
• E)$20.00.

---

Definitions:

Donative Intent

The intention to give a gift without expecting anything in return, a necessary component of the legal analysis of gift transactions.

Delivery

The process of transporting goods from one place to another.

Monetary Valuation

The process of determining the financial value of an asset, a company, or an intangible property.

Bailor

A bailor is someone who temporarily hands over control of property to another, known as the bailee, but retains its ownership.