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:

Courts of Chancery

Courts that have jurisdiction over matters of equity, including trusts, land use, and the administration of estates, historically separate from courts of law.

Common Law

A legal system based on court precedents and customs, rather than codified written laws.

Civil Law

The system of law concerned with private relations between members of a community rather than criminal, military, or religious affairs.

Parliamentary Supremacy

The principle that Parliament has the highest legal authority within a jurisdiction, making laws that are not subject to judicial review or limitation by other bodies.