Consider the Following Information About a Banking System: New Currency

question 110

Multiple Choice

Consider the following information about a banking system: new currency deposited in the system = $40 billion, legal reserve ratio = 0.20, excess reserves prior to the currency deposit = $0. The $40 billion deposit of currency
Into checking accounts will create excess reserves of

• A) $20 billion.
• B) $32 billion.
• C) $40 billion.
• D) $0.

---

Definitions:

Sociologist

An expert in or student of sociology, which is the study of the development, structure, and functioning of human society.

Hegemonic

Relating to or denoting the domination of one social group or nation over others, often manifesting in cultural, economic, or political influence.

Emphasized Femininity

A concept that refers to a set of socially constructed ideals of female behavior that emphasize compliance, nurturance, and deference to men's power and interests.

Dominant Forms

Refers to the most powerful, prevalent, or influential forms or versions of something in a particular context or society.