If the Reserve Ratio Is 5 Percent,then $1,000 of Additional

question 70

Multiple Choice

If the reserve ratio is 5 percent,then $1,000 of additional reserves can create up to

• A)$5,500 of new money.
• B)$5,000 of new money.
• C)$4,000 of new money.
• D)None of the above is correct.

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Definitions:

Temperaments

Physiological dispositions to respond to the environment in certain ways; they are present in infancy and in many nonhuman species and are assumed to be innate.

Personalities

The combination of characteristics or qualities that form an individual's distinctive character.

Aptitudes

Natural abilities or talents that determine how well someone can perform a certain task or activity with the potential for future development.

Traits

Enduring characteristics or qualities that define an individual's personality.