If the Required Reserve Ratio Is 20 Percent and the Fed

question 123

Multiple Choice

If the required reserve ratio is 20 percent and the Fed buys a $10,000 security from a depository institution that currently has no excess reserves, the money supply _____

• A) decreases by $10,000.
• B) increases by $100,000.
• C) decreases by $100,000.
• D) increases by $50,000.
• E) decreases by $50,000.

---

Definitions:

Social Conditions

The environmental, economic, and cultural factors that influence and shape the life of individuals or communities.

Langston Hughes

An influential African American poet, social activist, novelist, playwright, and columnist known for his work during the Harlem Renaissance.

Bob Dylan

An influential American singer-songwriter known for his poetic lyrics and significant impact on music and culture, particularly in the 1960s.

Antiracist Cultural Appropriation

The act of adopting elements of a culture in a way that respects and acknowledges their origins and actively combats racism.