New Deposits of $1 Billion Are Placed in a Bank

question 51

Multiple Choice

New deposits of $1 billion are placed in a bank. The reserve requirement is 20%. How much does the money supply increase, assuming no leakages?

• A) $1 billion
• B) $5 billion
• C) $10 billion
• D) $20 billion

---

Definitions:

Present Environments

The current external and internal contexts within which individuals, organizations, or systems operate.

Future Environments

Refers to scenarios or conditions that are likely to occur in the future, impacting societies, technologies, economies, and the natural world.

Organization's Design

Refers to the structured arrangement of roles, responsibilities, and processes within an organization to achieve its goals efficiently.

Communication

The act of conveying information, ideas, emotions, or instructions through verbal, nonverbal, written, or visual means between entities.