If a Bank Receives a New Deposit of $10,000, and the Required

question 191

Multiple Choice

If a bank receives a new deposit of $10,000, and the required reserve ratio is 25 percent, then the new money that can be created by the banking system, including the initial deposit, is:

• A) $25,000.
• B) $2,500.
• C) $4,000.
• D) $40,000.
• E) $10,000.

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Definitions:

Chromosomes

Structures within cells that contain genetic material (DNA) and are responsible for determining the characteristics of an organism.

Adenine

A purine nucleobase used in forming nucleotides of the nucleic acids DNA and RNA, involved in cellular energy transfer and signaling.

Thymine

One of the four nucleotide bases of DNA, paired with adenine, and responsible for carrying genetic information.

Guanine

One of the four main nucleobases found in DNA and RNA, which pairs with cytosine and is essential for DNA replication and cellular function.