If the Required Reserve Ratio Is 15 Per Cent,there Is

question 206

Multiple Choice

If the required reserve ratio is 15 per cent,there is no currency drain,and banks loan all of their excess reserves,an increase in the monetary base of $20,000 leads to a total increase in the quantity of money of

• A)$133,333.
• B)$20,000.
• C)$3,000.
• D)$300,000.
• E)$200,000.

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Definitions:

Pancreas

An endocrine gland, located below the stomach, that produces digestive juices and hormones.

Islet Cells

The part of the pancreas that produces glucagon and insulin.

Glucagon

A hormone produced by the pancreas that increases blood glucose levels, acting as a counterbalance to insulin.

Insulin

A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into tissues for energy.