If a Bank Has $500 in Excess Reserves and the Reserve

question 44

Multiple Choice

If a bank has $500 in excess reserves and the reserve requirement is 20 percent, then the maximum amount by which this individual bank can increase the money supply is _____.

• A)$100
• B)$400
• C)$500
• D)$1, 000
• E)$2, 500

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Definitions:

Retrograde Amnesia

A type of amnesia where an individual loses pre-existing memories to a certain event, but does not affect new memories.

Retrograde Amnesia

A loss of memory access to events that occurred, or information that was learned, before an injury or the onset of a disease.

Anterograde Amnesia

A loss of the ability to create new memories after the event that caused the amnesia, leading to a partial or total inability to recall the recent past, while long-term memories from before the event remain intact.

Anterograde Amnesia

A loss of the ability to create new memories after the event that caused the amnesia, leading to a partial or complete inability to recall the recent past, while long-term memories from before the event remain intact.