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.

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Definitions:

Equal Wages

The principle or goal of ensuring that employees are paid the same amount for the same work, regardless of gender, race, or other potentially discriminatory factors.

National Sales Tax

A tax applied to the sale of goods and services at the national level.

Tariff Rates

Import duties, also known as tariff rates, are financial charges applied to imported goods, influencing trade and economic policies.