If the Reserve Ratio Is 10 Percent,$1,000 of Additional Reserves

question 110

Multiple Choice

If the reserve ratio is 10 percent,$1,000 of additional reserves can create

• A)$100 of new money.
• B)$1,000 of new money.
• C)$10,000 of new money.
• D)None of the above is correct.

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Definitions:

Justice Approach

A way to base decisions on the basis of fairness

Ethical Decision-Making

The procedure of scrutinizing and opting for alternatives that adhere to principles of ethics.

Rights Approach

A decision-making method based on using moral principles that least infringe on the entitlements of others.

Moral Principles

Fundamental beliefs about what is right and wrong that guide an individual's behavior and decision-making.