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A Banking System Has Total Deposits of $50 Billion and Total

question 67

Multiple Choice

A banking system has total deposits of $50 billion and total reserves of $7 billion. If the required reserve ratio is 10%, what is the maximum deposit creation potential of the banking system?

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Definitions:

Fear

An unpleasant emotional state triggered by the perception of danger, real or imagined.

Positive Emotions

Emotions that are associated with happiness and well-being, including joy, gratitude, and love.

Need For Cognition

A psychological trait that describes an individual's preference for effortful cognitive activities, essentially enjoying thinking and problem-solving.

Promotion Focus

A motivational state where the primary goal is to achieve positive outcomes and realize aspirations.

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