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.

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Definitions:

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A form of therapy that focuses on accepting the differences between partners and working on strategies to improve the relationship.

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A form of psychotherapy aimed at couples, which focuses on changing negative patterns of interaction through the application of reinforcement strategies.

Directive

An instruction or order given by someone in authority.

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