The Following Is Information About a Banking System: New Currency

question 165

Multiple Choice

The following is information about a banking system: new currency deposited in the system = $40 billion; desired reserve ratio = 20%; excess reserves prior to the new currency deposit = $0.Refer to the above information.The total demand deposit after the expansion of the money supply through loans is:

• A)$160 billion.
• B)$200 billion.
• C)$40 billion.
• D)$128 billion.

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Definitions:

Combined Cell

In spreadsheet programs such as Microsoft Excel, a combined cell is created by merging two or more adjacent cells into a single cell, often to improve the layout or logically group data together.

Confidential Information

Information that is not public and is protected from unauthorized access, including private, sensitive, or proprietary data.

Hide

Hide refers to the action of making certain elements, such as files, windows, or layers in a graphic program, invisible or removed from view.

Column C

In spreadsheet applications, Column C refers to the third vertical column in which data or functions can be entered.