In the Simple Deposit Expansion Model, If the Desired Reserve

question 164

Multiple Choice

In the simple deposit expansion model, if the desired reserve ratio is 10 percent and the Bank of Canada increases reserves by $100, chequable deposits can potentially expand by ________.

• A) $100
• B) $250
• C) $500
• D) $1000

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Definitions:

Geographic Markets

Markets that are segmented or defined by geographical boundaries, which can range from local to global.

Basic Business Strategy

A foundational approach that outlines how a business aims to achieve its goals, compete in the market, and satisfy its customers.

Customer Needs

The recognized necessities or desires that drive consumers to seek out products or services for satisfaction or solution.

Value Chain Analysis

A strategic tool used to analyze the activities that create value in a business, from conceptualization to delivery to consumers.