Suppose the Banking System Currently Has $300 Billion in Reserves;

question 138

Multiple Choice

Suppose the banking system currently has $300 billion in reserves; the reserve requirement is 10 percent; and excess reserves amount to $3 billion. What is the level of deposits?

• A)$3,300 billion
• B)$2,970 billion
• C)$2,700 billion
• D)$2,673 billion

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Definitions:

Less Respect

The condition of being regarded with diminished esteem or honor.

Attributions

The process by which people explain the causes of their own and others' behaviors, often categorizing these explanations into internal or external factors.

Emotional Responses

Reactions governed by feelings, such as happiness, anger, or sadness, in response to stimuli or thoughts.

External Factor

An influence originating outside an individual or system that can impact the outcome of processes or behaviors.