The Maximum Amount by Which the Entire Banking System Can

question 121

Multiple Choice

The maximum amount by which the entire banking system can create money is equal to:

• A)a fraction of its excess reserves.
• B)a fraction of its required reserves.
• C)a multiple of its total reserves.
• D)a multiple of its excess reserves.
• E)its excess reserves.

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Definitions:

Actionable Behavior

Conduct that can be the basis for legal action because it violates a legal standard or right.

Emotional Distress

A legal term referring to the mental suffering or anguish induced by an incident of negligence or intentional wrongdoing.

Outrageous Conduct

Behavior by a party that is so extreme or beyond the bounds of decency that it causes shock or offense.

Actionable Behavior

Conduct that gives sufficient legal ground for a lawsuit, identifying behaviors that can lead to legal action.