Assume That the Federal Reserve Injects $45 Billion into the Financial

question 71

Multiple Choice

Assume that the Federal Reserve injects $45 billion into the financial system. If the money supply increases by a maximum of $300 billion, what must the reserve requirement be?

• A)10%
• B)12%
• C)15%
• D)18%
• E)20%

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Definitions:

Racialization

The process of attributing racial identities to a relationship, social practice, or group that did not identify itself as such, shaping social structures and perceptions.

Social Construction

The theory that many aspects of reality, including knowledge, belief systems, and social norms, are created through cultural and social practices and are not inherent.

Racial Categories

Classifications of humans into groups based on physical traits, ancestry, genetics, or social relations, often influencing identity and social positions.

Institutional Discrimination

Discrimination that has become part of the structures, processes, and procedures of organizations, leading to the disadvantage of certain groups.