The Maximum Increase in the Money Supply Possible from a Deposit

question 99

Multiple Choice

The maximum increase in the money supply possible from a deposit of $D into the banking system where R is the reserve requirement is

• A)(1 / R)(D − R).
• B)R × D.
• C)(1 / R)(1 − R)D.
• D)(1 / R)D.

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Definitions:

Sternum

The long, flat bone located in the center of the chest, connecting to the ribs via cartilage, forming part of the rib cage.

Sections

Distinct parts into which something is or may be divided, or a method of delivering a baby surgically.

Torso

The central part of the human body that extends from the neck to the pelvis, excluding the head, arms, and legs.

Thoracic Cage

The Thoracic Cage, also known as the rib cage, is a skeletal structure made of ribs and sternum that protects vital organs in the chest and supports the upper body.