Use the Information Below to Answer the Following Questions

question 39

Multiple Choice

Use the information below to answer the following questions.
Fact 24.6.1
The Bank of Speedy Creek has chosen the following initial balance sheet:

-Refer to Fact 24.6.1.Suppose all the banks in the banking system have the same desired reserve ratio as the Bank of Speedy Creek.If the currency drain ratio is 32 percent,what is the size of the money multiplier?

• A)3.3
• B)1.25
• C)5.0
• D)4.0
• E)2.7

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Definitions:

Normative Structures

The unwritten rules and expectations that guide behavior within a society, including traditions, norms, and social standards.

Materialized Norms

Norms that have been established and accepted in a society, influencing behavior and social interactions.

Idealizations

The process of envisioning or treating something in an ideal form, often ignoring the realities or imperfections.

Culture

The sum total of the social behaviors, norms, knowledge, beliefs, arts, laws, customs, capabilities, and habits of the members of a society.