The Banking System Has Just Experienced an Increase in Deposits

question 289

Multiple Choice

The banking system has just experienced an increase in deposits of $50,000. The currency drain ratio is 20 percent and the desired reserve ratio is 10 percent. What does the money multiplier equal?

• A) 3.33
• B) 10.00
• C) 4.00
• D) 0.25

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Definitions:

Linguistic Domination

The control or supremacy of one language over others, often leading to the suppression or decline of minority languages.

Power Theory

A theory in sociology and political science that examines the distribution and effects of power within societies.

Social Controls

Mechanisms, strategies, and institutions by which society regulates individual and group behavior, aiming to conform to societal norms and rules.

Conflict Theory

A theory in sociology that views society as an arena of inequality that generates conflict and change, focusing on the disparities between social groups.