If Required Reserves Are 20 Per Cent and the Reserve

question 99

Multiple Choice

If required reserves are 20 per cent and the Reserve Bank buys $10,000 worth of government securities, what is the change in the banks' total reserves?

• A) $8,000
• B) $100,000
• C) $20,000
• D) $10,000
• E) $2,000

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Definitions:

Work Outside

Refers to employment or activities that are conducted in open environments, away from traditional office settings.

Parasympathetic Division

One of the two divisions of the autonomic nervous system, often referred to as the "rest and digest" system, that conserves energy and restores the body to a state of calm.

ANS

Part of the involuntary nervous system that controls the heart, stomach, and intestines.

Intrinsically Rewarding

An activity or action that is rewarding in itself, providing a sense of satisfaction and fulfillment without the need for external rewards.