In the Simple Deposit Expansion Model, If the Bank of Canada

question 33

Multiple Choice

In the simple deposit expansion model, if the Bank of Canada purchases $100 worth of bonds from a bank that previously had no excess reserves, the bank can now increase its loans by ________.

• A) $10
• B) $100
• C) $100 times the reciprocal of the desired reserve ratio
• D) $100 times the desired reserve ratio

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Definitions:

Graphical Techniques

Methods used in data analysis that involve the visual representation of data to identify patterns, trends, and relationships.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values.

Histograms

Graphical representations of the distribution of numerical data, where the data is grouped into bins or intervals.

Graphical Techniques

The use of plots, charts, and graphs to visualize, interpret, and analyze data.