If Reserves in the Banking System Increase by $100, Then

question 61

Multiple Choice

If reserves in the banking system increase by $100, then chequable deposits will increase by $2000 in the simple model of deposit creation when the desired reserve ratio is ________.

• A) 0.01
• B) 0.05
• C) 0.10
• D) 0.20

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Definitions:

Tornadoes

Violently rotating columns of air touching the ground, usually attached to a cumulonimbus cloud.

Unimodal

Refers to a distribution with a single peak or mode.

Skewed

Referring to data that is not symmetrically distributed, often having a longer tail on one side of the peak.

Baseball Games

Competitive sporting events featuring two teams that take turns batting and fielding, governed by a set of rules.