If the Reserve Requirement Is 2

question 98

Multiple Choice

If the reserve requirement is 2.5% and a bank initially receives $30,000 in deposits from the Fed, then the maximum amount of money that the banking system can create is

• A) $750.
• B) $1,500.
• C) $30,000.
• D) $1,200,000.

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Definitions:

Sauk

A Native American tribe traditionally located in the Midwestern United States, notably involved in the Black Hawk War against the United States in 1832.

A Son of the Forest

An autobiographical work published in 1829 by William Apess, a Pequot author, which is among the first autobiographies written by a Native American.

Native American

Indigenous peoples of the Americas, including various tribes and nations, who inhabited the land prior to European colonization.

Environmental Literature

Written works that explore the relationships between humans and the environment, often highlighting environmental issues, conservation efforts, and the natural world.