The Expansion of Deposits Resulting from an Injection of New

question 23

Multiple Choice

The expansion of deposits resulting from an injection of new cash to the banking system can be calculated as follows.The change in deposits is equal to

• A)the change in loans divided by the sum of the target reserve ratio.
• B)the change in reserves divided by the cash-deposit ratio.
• C)the change in reserves divided by the target reserve ratio.
• D)the change in reserves divided by the sum of the target reserve ratio and the cash-deposit ratio.
• E)the change in reserves divided by the sum of excess reserves and cash drain.

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Definitions:

Neurons

Specialized cells within the nervous system that transmit information through electrical and chemical signals.

Brain Growth

Refers to the process of development and maturation of the brain, including increases in size, complexity, and functional capacity.

Dendrites

The branched projections of a neuron that are responsible for conducting the electrical signals toward the cell body.

Synaptic Connections

The points of contact where two neurons communicate with each other, transmitting signals through the release of neurotransmitters.