The Following Question Are Based on the Following Information: the Country

question 70

Multiple Choice

The following question are based on the following information: The country has a fractional-reserve banking system, required reserves are 12.5 percent of demand deposits, each bank initially has reserves exactly equal to the required amount, each wants to maintain this equality, and no person withdraws cash from the banking system.
-Suppose $10,000 in newly printed currency is deposited in a checking account in bank A.Bank A now has

• A) excess reserves of $10,000.
• B) required reserves up by $10,000.
• C) net worth up by $10,000.
• D) demand deposits up by $10,000.
• E) added $10,000 to the money supply.

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Definitions:

Liberal Ideologies

Political and social philosophies that emphasize individual rights, democracy, equality, and the welfare state, supporting change in the social, political, and economic realms.

Conservative Ideologies

Political beliefs that emphasize tradition, the importance of order, and resistance to rapid change in society or governance.

Contemporary Americans

Refers to the current population of the United States, often in the context of discussing their social, political, and economic conditions and behaviors.