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:

Functional Animation

A feature in interface design where animations are used to enhance the user experience by providing visual feedback and aiding in the understanding of tasks.

Sequences

Ordered series or arrangements where elements follow a specific, logical pattern or succession.

Procedures

Established ways of performing tasks or operations, often documented in step-by-step instructions.

Conservative Color

A color scheme that is traditional, subdued, and often used in settings where professionalism and restraint are emphasized.