If Reserves in the Bank of Canada Increase by $100

question 142

Multiple Choice

If reserves in the Bank of Canada increase by $100, then chequable deposits will increase by $400 in the simple model of deposit creation when the desired reserve ratio is ________.

• A) 0.01
• B) 0.10
• C) 0.20
• D) 0.25

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Definitions:

Area

A measure of the extent of a two-dimensional figure or shape in a plane, often measured in square units.

Z-score

A numerical indicator that shows how a specific value compares to the average of a set of values by measuring the number of standard deviations it is from the mean.

Position

The rank or specific role an individual occupies or holds within a structure or organization.

Area

A quantification of the size of a 2D shape or surface, represented in units squared.