Assume That the Reserve Requirement Is 10% and No Excess

question 11

Multiple Choice

Assume that the reserve requirement is 10% and no excess reserves are held. If an initial cash deposit of $10,000 is made, the money supply has the potential to increase by

• A) $11,000.
• B) $90,000.
• C) $100,000.
• D) $110,000.

---

Definitions:

Irish-Catholic Immigrants

Immigrants from Ireland, often Catholic, who moved to other countries for better opportunities or to escape hardships.

Religious Toleration

The practice of allowing and accepting religious beliefs and practices that differ from one's own, often within a society or a state.

Economic Independence

The state of having sufficient personal wealth to live, without having to depend on income from some form of employment.

Genuine Freedom

The authentic state of being free from undue or oppressive restrictions imposed by authority on one's way of life, behavior, or political views.