A Bank Has Excess Reserves of $1,000,000 and Makes a New

question 66

Multiple Choice

A bank has excess reserves of $1,000,000 and makes a new loan for $500,000.If the bank faces a 10 percent required reserve ratio,by how much will the money supply increase when the loan is made?

• A) $0
• B) $50,000
• C) $5,000,000
• D) $1,500,000
• E) $2,000,000

Recognize the role of social, cultural, and individual factors in aggression and conflict.

Grasp methods and theories in persuasion and attitude change, including fear appeals and the elaboration likelihood model.

Understand the concept and application of aversion therapy in treating undesirable behaviors.

Comprehend the differences and purposes of various cognitive-behavioral approaches, including third-wave therapies.

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Definitions:

Positive Profit

Positive profit occurs when a business's total revenues exceed its total costs, indicating financial gain from its operations.

Marginal Costs

Relates to the additional expenses faced when a business decides to increase its output or product quantity by one more unit.

Average Total Cost

The total cost of production divided by the quantity produced, representing the per-unit cost of production.

Price-Taker Industry

A sector in which businesses must accept the prevailing prices in the market as they have no influence over setting them.