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Refer to the Information Below Which Shows the Demand Deposits

question 190

Multiple Choice

Refer to the information below which shows the demand deposits and actual reserves of a banking system.When the desired reserve ratio is 20 percent, the money creating potential of the entire banking system is: Refer to the information below which shows the demand deposits and actual reserves of a banking system.When the desired reserve ratio is 20 percent, the money creating potential of the entire banking system is:   A) $4,000 B) $6,000 C) $8,000 D) $10,000

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Definitions:

Trade

The exchange of goods or services between parties, which can be within or across borders.

Intermediation Revenue

Income generated by serving as an intermediary in transactions between two or more parties, such as brokerage fees or commissions.

Third Parties

Entities or individuals who are not directly involved in a transaction or contract but may be affected by it or have a relevant interest.

Middlemen

Intermediaries or agents between the producer and the consumer, facilitating the distribution and sale of goods.

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