Use the Following to Answer Questions

question 55

Multiple Choice

Use the following to answer questions:
-(Scenario: Assets and Liabilities of the Banking System) Refer to Scenario: Assets and Liabilities of the Banking System. If the reserve ratio is 9% and the banking system does NOT want to hold excess reserves, how much more can be added to the money supply?

• A) about $667,000
• B) about $111,000
• C) $250,000
• D) $1 million

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Definitions:

Normal Distribution

A bell-shaped distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Normal Distribution

This is a probability distribution characterized by symmetry around the mean, where occurrences are more common near the mean than far from it.

Symmetrical

A shape or distribution that is mirrored and balanced on both sides of a central point.

Standard Normal Distribution

A type of normal distribution where the mean is 0 and the standard deviation is 1.