If the Required Reserve Ratio Is 0

question 134

Multiple Choice

If the required reserve ratio is 0.2,and the Fed buys $3,000 of U.S.government securities,the maximum amount by which the money supply can increase is:

• A)$200.
• B)$2,000.
• C)$600.
• D)$15,000.
• E)$1,500.

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Definitions:

Responsibility

An obligation to carry out duties or tasks effectively and being accountable for the outcomes.

Outcomes

are the results or consequences of actions taken by individuals or organizations.

Perceptions

The process of becoming aware of something via the senses; a way of understanding or interpreting something.

Performance Appraisal

The process of evaluating and documenting an employee's performance, to provide feedback, determine developmental needs, and guide decision-making about promotions, bonuses, or terminations.