If the Required Reserve Ratio Is 20 Percent,what Is the Simple

question 125

Multiple Choice

If the required reserve ratio is 20 percent,what is the simple deposit multiplier?

• A) 20
• B) 0.05
• C) 5
• D) 50
• E) 2

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Definitions:

Social Exchange

A theory that describes social behavior in terms of the exchange of resources, such as information, goods, or services, between individuals or groups.

Economics

A social science concerned with the production, distribution, and consumption of goods and services, studying how individuals, businesses, governments, and nations make choices on allocating resources to satisfy their desires and needs.

Cultural Exchanges

The sharing of ideas, customs, and social behavior between different cultures, often leading to increased understanding and tolerance.

Decade of the Brain

An initiative designated by the U.S. Congress for the 1990s aimed at enhancing public awareness of the benefits of brain research.