If Reserves in the Banking System Increase by $100,then Checkable

question 63

Multiple Choice

If reserves in the banking system increase by $100,then checkable deposits will increase by $400 in the simple model of deposit creation when the required reserve ratio is

• A)0.01.
• B)0.10.
• C)0.20.
• D)0.25.

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Definitions:

U.S. Army

A service branch of the United States Armed Forces tasked with carrying out military operations on land.

Californios

The Hispanic residents of California, particularly those living there before it became a part of the United States.

Cattle Ranchers

Individuals or companies engaged in the raising and grazing of cattle, often for meat production, on extensive ranches.

1830s and 1840s

Decades in the 19th century characterized by significant social, political, and economic changes, including industrialization and the expansion of slavery in the United States, leading to increased tensions leading to the Civil War.