If the Target Reserve Ratio in the Banking System Is

question 50

Multiple Choice

If the target reserve ratio in the banking system is 10 percent, there is no cash drain, and there are no excess reserves, a new deposit of $1 will lead to an eventual expansion of the money supply of

• A)$0.01
• B)$0.10
• C)$1.00
• D)$10.00
• E)$100.00

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Definitions:

Facilitation

The process by which certain living organisms make an environment more suitable for other organisms to inhabit, often leading to changes in the community composition.

Ecosystem

A biological community of interacting organisms and their physical environment, functioning as a system through nutrient cycles and energy flows.

Immature Ecosystems

Ecosystems in the early stages of development, which have yet to reach a stable climax community and are characterized by rapid changes in species composition and structure.

Food Webs

A food web consists of all the food chains in a single ecosystem.