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:

Maize

A cereal grain first domesticated by indigenous peoples in southern Mexico about 10,000 years ago, known scientifically as Zea mays.

Mutagenic Agent

A chemical, physical, or biological factor that can induce genetic mutations, potentially leading to cancers and various genetic disorders.

Plant Domestication

The process by which wild plants have been evolved into crop plants through selective breeding by humans.

Natufians

A prehistoric culture located in the Levant, significant for their early adoption of sedentary communities and agriculture.