If the Required Reserve Ratio Is 0

question 87

Multiple Choice

If the required reserve ratio is 0.05 and the Fed sells a $2,000 bond directly to an individual who pays for it with a check,what will happen to the money supply?

• A) The money supply will increase by $2,000.
• B) The money supply will decrease by $2,000.
• C) The money supply will increase by $100.
• D) The money supply will decrease by $100.
• E) The money supply will decrease by $200.

Acknowledge the impact of gender-specific parental expectations on children's play behavior.

Understand the scientific evidence (or lack thereof) linking vaccinations to autism.

Recognize the importance of early emotional and social interventions in mitigating the effects of difficult childhood temperaments.

Grasp the significance of contact comfort and social responses in the early emotional development of infants.

---

Definitions:

Permitted Exemption

A deduction allowed under tax law that decreases the amount of income that is subject to taxation, based on specific criteria or eligibility.

Household Income

The combined gross income of all members of a household, used for various financial assessments.

Wage Income

Earnings received from an employer for labor or services performed, typically calculated on an hourly, daily, or piecework basis.

Form W-2

The form used by employers to report an employee's annual wages and the amount of taxes withheld from their paycheck.