After the Reserve Bank Increases Reserves in the Banking System

question 34

Multiple Choice

After the Reserve Bank increases reserves in the banking system through open-market purchases, banks create new deposits through multiple rounds of lending and accepting deposits, until the:

• A)Reserve Bank requires them to stop
• B)deposit insurance limit is reached
• C)actual reserve-deposit ratio is greater than the desired reserve-deposit ratio
• D)actual reserve-deposit ratio is equal to the desired reserve-deposit ratio

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Definitions:

Individual Hampers

Customized gift baskets typically containing a variety of food items, beverages, and sometimes non-food gifts.

Showmanship Method

A sales technique that involves presenting products or services in an entertaining, engaging, and compelling manner to captivate potential customers.

Prices

The amount of money required to purchase goods or services, reflecting their value or market demand.

Compensation Method

A system or strategy used to determine the payment or remuneration for employees or contractors, which may include salary, wages, commissions, or bonuses.