In the Simple Deposit Expansion Model,if the Fed Purchases $100

question 167

Multiple Choice

In the simple deposit expansion model,if the Fed purchases $100 worth of bonds from a bank that previously had no excess reserves,the bank can now increase its loans by

• A)$10.
• B)$100.
• C)$100 times the reciprocal of the required reserve ratio.
• D)$100 times the required reserve ratio.

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Definitions:

Lesser Omentum

Peritoneal fold passing from the liver to the lesser curvature of the stomach and to the upper border of the duodenum for a distance of approximately 2 cm beyond the pylorus.

Digestive Tract Wall

The layers of tissue that make up the structure of the gastrointestinal tract, facilitating the process of digestion.

Lamina Propria

A layer of loose connective tissue found beneath the epithelium, part of the mucous membranes.

Serosa

A smooth membrane consisting of a layer of cells that secrete serous fluid, lining various cavities and organs in the body, including the abdomen.