In the Simple Deposit Expansion Model,if the Required Reserve Ratio

question 126

Multiple Choice

In the simple deposit expansion model,if the required reserve ratio is 10 percent and the Fed increases reserves by $100,checkable deposits can potentially expand by

• A)$100.
• B)$250.
• C)$500.
• D)$1,000.

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Definitions:

Cytosines

One of the four main nucleobases found in DNA and RNA, which pairs with guanine during the nucleic acids' synthesis.

Genes

Genes are units of heredity made up of DNA. They carry the information responsible for the development of organisms.

Carriers

Individuals who have one copy of a gene for a recessive trait and can pass that gene to their offspring, even if they do not exhibit the trait themselves.

Recessive Genes

Genes that are not dominant and can be masked by the presence of dominant genes, requiring two copies, one from each parent, for the trait to be expressed.