If the Reserve Ratio Is 0

question 83

True/False

If the reserve ratio is 0.3 and a deposit of $1,000 is made to the bank, the bank can lend out $700.

---

Definitions:

Demand

The interest and capacity of buyers to acquire a product or service for a certain cost.

Human Capital

The abilities, understanding, and expertise held by a person or a group, considered in terms of their economic or value worth to a company or nation.

Ph.D.

A Doctor of Philosophy degree, a postgraduate academic degree awarded by universities.

College Professors

Faculty members at colleges and universities responsible for teaching courses, conducting research, and participating in academic service.