If the Amount of High-Powered Money Were 100 and the Bank

question 92

Multiple Choice

If the amount of high-powered money were 100 and the bank reserve holding ratio was 0.25 then the maximum stock of deposits would be (assume that citizens prefer to keep 10% of their money as cash)

• A)100/0.25 times 1.1 which is 440.
• B)100/0.35 which is approximately 286.
• C)100/0.35 times 1.1 which is approximately 314.
• D)100/0.10 which is 1000.

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Definitions:

Biological Patterns

Refers to recurring characteristics or events in the biological world, such as genetic sequences, behavioral phenomena, or growth formations in organisms.

Temperament

An individual's innate predisposition towards emotional responses and behaviors, often evident from infancy.

Infancy

The period in human development from birth to about 18 months when a child is learning basic motor skills, developing cognitively, and beginning to engage socially.

Synchrony

The coordinated, simultaneous action or occurrence of events or processes, often seen in natural and human-made systems.