Consider a New Deposit of $100 000 to the Canadian

question 67

Multiple Choice

Consider a new deposit of $100 000 to the Canadian banking system. The commercial bank that initially receives this deposit will find itself with

• A)no excess reserves if there is no reserve requirement.
• B)$1 000 of excess cash reserves if its target reserve ratio is 10 percent.
• C)$2 000 of excess cash reserves if its target reserve ratio is 2 percent.
• D)$10 000 of excess cash reserves if its target reserve ratio is 10 percent.
• E)$98 000 of excess cash reserves if its target reserve ratio is 2 percent.

---

Definitions:

Income Generation

Refers to the process of earning money through various activities, enabling individuals or groups to sustain their livelihoods.

Managing Households

The act of overseeing the day-to-day operations and finances of a family or household, including budgeting, shopping, and planning.

Scapegoat Theory

The assertion that prejudice and discrimination originate in the frustrations of people who want to blame someone else for their problems.

Cultural Norms

Collective norms and regulations that influence the conduct of individuals within societal collections.