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:

Middle Score

The median value in a set of numbers, representing the point at which half of the figures are above and half are below.

Median

A statistical measure indicating the middle value in a set of data when the values are arranged in ascending or descending order, effectively dividing the dataset into two equal halves.

Values

Fundamental beliefs or standards of an individual or society, shaping attitudes and behaviors.

Mean

The mean value of a collection of numbers, determined by adding all the numbers together and then dividing that total by the quantity of numbers in the collection.