On a Certain Date, the Banking System Had $40 Billion

question 5

Multiple Choice

On a certain date, the banking system had $40 billion in excess reserves. The legally required reserve ratio was 20 percent. Potentially, if these funds were loaned and eventually the entire amount re-deposited with a bank, the banking system as a whole could increase the money supply by

• A) a maximum of $40 billion.
• B) a maximum of $160 billion.
• C) a maximum of $200 billion.
• D) more than $200 billion.

Analyze the characteristics of Canada's social system, discerning elements of both closed (caste) and open (meritocracy) systems through examples.

Discuss the concept of the "American Dream," its underlying idea, and sociological criticisms directed towards it.

Explain how socioeconomic status can differ among individuals despite income disparities, using Weber's concepts.

Formulate arguments from both "blaming the victim" and "blaming the system" perspectives on social issues like unemployment, and assess these arguments critically.

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Definitions:

Double-Declining-Balance

An accelerated method of depreciation that doubles the regular depreciation rate, allowing for faster depreciation of assets in the early years.

Straight-Line

A method of calculating depreciation or amortization by dividing the difference between an asset's cost and its salvage value by the number of years it is expected to be used.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, deterioration, or obsolescence.

Capital Expenditures

Money spent by a firm on buying or improving hard assets such as land, factories, or equipment.