Assuming All Excess Reserves Are Loaned Out, Currency Holdings by the Public

question 89

Multiple Choice

Assuming all excess reserves are loaned out, currency holdings by the public are zero, and a reserve ratio of 2 percent, an initial deposit of $500 will lead to a total increase in deposits of

• A) $250.
• B) $5,000.
• C) $25,000.
• D) $50,000.

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Definitions:

Population

The total set of observations or elements from which samples can be drawn for statistical analysis.

Random Number Table

A table consisting of sequences of numbers generated in a random fashion, used for random sampling and simulation in statistical analysis.

Random Number Generator

An algorithm or device designed to produce a sequence of numbers or symbols that cannot be reasonably predicted better than by random chance.

Nonsampling Error

Nonsampling Error refers to inaccuracies in survey or experiment results caused by factors other than the sample selection, such as data collection and processing errors.