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

question 152

Multiple Choice

If reserves in the banking system increase by $100,then checkable deposits will increase by $667 in the simple model of deposit creation when the required reserve ratio is

• A)0.01.
• B)0.05.
• C)0.15.
• D)0.20.

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Definitions:

Fire Extinguisher

A portable device used to put out small fires by discharging a substance that cools the burning material, deprives the flame of oxygen, or interferes with the chemical reactions occurring in the flame.

Positive Activities

Actions or pursuits that contribute to well-being and happiness, often involving physical, mental, or social engagement.

Self-confidence

The state of trust in one's abilities, qualities, and judgment.

Budget Period

A specific timeframe, usually a fiscal year or quarter, within which financial planning and expenditure occur.