If All the Banks in the Banking System Collectively Have

question 55

Multiple Choice

If all the banks in the banking system collectively have $20 million in cash reserves, and have a target reserve ratio of 5 percent, the maximum amount of deposits the banking system can support is

• A)$4 million.
• B)$40 million.
• C)$80 million.
• D)$100 million.
• E)$400 million.

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Definitions:

Alfredo Sauce

A rich and creamy sauce made with butter, heavy cream, and Parmesan cheese, often served over pasta.

Fat

A macronutrient important for energy storage, hormone production, and insulation, but excessive intake can lead to health issues.

Dietary Fiber

The indigestible parts of plant foods that help promote a healthy digestive system, can aid in weight management, and prevent certain diseases.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks for protein synthesis within the body.