The Expansion of Deposits Resulting from an Injection of Cash

question 89

Multiple Choice

The expansion of deposits resulting from an injection of cash to the banking system can be calculated as follows:

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

Evaluate the impact of production decisions on firm profits and scale of operations.

Understand the structural and functional properties of smooth muscle.

Describe the roles of various cellular components and proteins in muscle function and maintenance.

Identify the locations and characteristics of different types of muscle tissues in the human body.

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Definitions:

Financial Reports

Documents that provide an overview of the financial condition and operations of a company, including balance sheets, income statements, and more.

Creditors

Individuals or institutions that lend money or extend credit to others, with the expectation of being repaid, often with interest.

Investors

Individuals or entities that commit capital to businesses with the expectation of financial returns.

Business Entity Concept

A concept of accounting that limits the economic data in the accounting system to data related directly to the activities of the business.