Suppose That the Federal Reserve Increases Bank Reserves and Banks

question 266

Multiple Choice

Suppose that the Federal Reserve increases bank reserves and banks lend out some of these reserves,but at some point banks still have $5 million more they wish to lend out.If the required reserve ratio is 10%,how much more money can banks create if they lend out the remaining amount?

• A)$55 million
• B)$50 million
• C)$45 million
• D)$40 million

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Stereotyped

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Being separated from others; in a situation where something or someone is not in contact or connected with other entities.

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Encompassing all aspects of one's sexuality, including physical, emotional, and psychological dimensions, recognizing it as a complex and integral part of the human experience.

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Individuals who lead and manage academic departments within educational institutions.