If the Reserve Requirement Is 25% and a New Deposit

question 96

Multiple Choice

If the reserve requirement is 25% and a new deposit leads to a potential increase in the money supply of $4,000, the amount of the new deposit must equal

• A) $1,000.
• B) $4,000.
• C) $5,000.
• D) $10,000.

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Definitions:

Integrated

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Urban Environment

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Generation

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