Assuming the Required Reserve Ratio Is 20 Percent and Total

question 36

Multiple Choice

Assuming the required reserve ratio is 20 percent and total reserves are set at $20 billion,then the maximum amount of deposits would be

• A)$100 billion.
• B)$4 billion.
• C)$40 billion.
• D)$60 billion.
• E)$120 billion.

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Definitions:

Milton Friedman

An American economist and Nobel laureate who is best known for his strong belief in free-market capitalism and the minimal role of government in the economy.

Adam Smith

A Scottish economist and philosopher, best known for his influential works on capitalism and the concept of the "invisible hand" guiding economic markets.

Archie Carroll

A scholar known for his work on corporate social responsibility (CSR), particularly for introducing the pyramid model of CSR.

Environmental Groups

Organizations focused on advocating for the protection and preservation of the environment and promoting sustainability.