If an Increase of $10 Million in Excess Reserves Increases

question 90

Multiple Choice

If an increase of $10 million in excess reserves increases checkable deposits in the banking system by a maximum of $50 million, the required reserve ratio would be _____

• A) 0 percent.
• B) 5 percent.
• C) 10 percent.
• D) 20 percent.
• E) 2 percent.

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Definitions:

Oxytocin

is a hormone and neurotransmitter that plays a role in social bonding, reproduction, and the childbirth process.

Prolactin

A hormone primarily responsible for stimulating milk production in breastfeeding women.

Neurotransmitters

Substances that carry messages from one nerve cell to another through the synapse in the nervous system.

Axon Terminals

The distal terminations of the branches of an axon, making connections with other neurons or muscle cells and facilitating neural transmission.