Suppose Warren Buffet Withdraws $1 Million from His Checking Account

question 36

Multiple Choice

Suppose Warren Buffet withdraws $1 million from his checking account at Chase Manhattan Bank.If the required reserve ratio is 20 percent,what is the maximum change in deposits in the banking system?

• A)-$5 million
• B)-$4 million
• C)-$200,000
• D)$1 million
• E)$5 million

---

Definitions:

Customer Receives

The point in time when the customer acquires possession or is given access to the product or service.

Strategic Value

The long-term benefit or importance of an asset, activity, or decision to an organization's overall objectives and competitiveness.

Marketing Mix

A blend of factors that can be controlled by a company to influence consumers to purchase its products. These factors typically include product, price, place, and promotion.

Logistical Services

Services that facilitate the movement, storage, and processing of goods throughout the supply chain, including transportation, warehousing, and customs brokerage.