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.

---

Definitions:

Test Anxiety

A type of performance anxiety characterized by extreme nervousness or fear about taking exams or being evaluated.

First Impressions

The initial perception one forms about a person or situation based on the first few moments of encounter, often lasting and difficult to change.

Emotional Behaviors

Actions that are the outcome of emotions, reflecting feelings such as anger, happiness, or sadness.

Primacy Effect

The propensity to better remember items presented at the outset of a list compared to those that are mentioned later.