If the Target Reserve Ratio in the Banking System Is

question 52

Multiple Choice

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

• A)$0.01
• B)$1.10
• C)$1.00
• D)$10.00
• E)$100.00

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Definitions:

Fraternal Twins

Fraternal twins are siblings born at the same time as a result of two different eggs being fertilized by two different sperm, making them genetically similar to ordinary siblings rather than identical.

Identical Twins

Twins who develop from a single fertilized egg, sharing the same genetic material and typically having very similar appearances.

IQ Scores

Numerical measurements of intelligence, typically derived from standardized tests.

Cerebral Cortex

The outer layer of the cerebrum in the brain, involved in high-level functions such as thought, language, and consciousness.