If You Deposit a $50 Bill in a Chartered Bank

question 171

Multiple Choice

If you deposit a $50 bill in a chartered bank that has a 10 percent desired reserve ratio, the bank will:

• A)have $45 of additional excess reserves.
• B)be capable of lending an additional $500.
• C)be capable of lending an additional $50.
• D)have $50 of desired reserves.

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Definitions:

Consciousness

The condition of being conscious and capable of thinking about one's own being, feelings, ideas, environment, etc.

Critical Knowledge

Knowledge that challenges accepted norms and seeks to uncover the underlying power structures and biases in society.

Emancipate Humans

Refers to the process of liberating individuals from restrictions, oppression, or bondage, enabling freedom and rights.

Marx's Dialectics

A method of analysis used by Karl Marx, drawn from Hegelian dialectics, that examines social and economic conflicts as driving forces of historical change.