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

Understand the fundamental concepts of actual authority and how it enables agents to bind principals in contracts.

Grasp the principle of estoppel and its impact on the liability of principals based on the reasonable beliefs of third parties.

Distinguish between the necessity of disclosing a principal’s identity during contract negotiation and the consequences of nondisclosure.

Comprehend the process of ratification and its applicability in binding principals to unauthorized acts.

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Definitions:

Glomerular Filtrate

The fluid that is filtered from the blood through the glomeruli of the kidney during the formation of urine.

Metabolically Important Substances

Chemical compounds or elements that play crucial roles in the metabolic processes of organisms, including nutrients, enzymes, and hormones.

Glucose

Six-carbon monosaccharide; used as an energy source during cellular respiration and as a monomer of the structural polysaccharides.

Tubular Secretion

Movement of certain molecules from blood into the distal convoluted tubule of a nephron so that they are added to urine.