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

question 38

Multiple Choice

If reserves in the banking system increase by $100,then checkable deposits will increase by $1,000 in the simple model of deposit creation when the required reserve ratio is

• A)0.01.
• B)0.10.
• C)0.05.
• D)0.20.

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Definitions:

Contingent Liability

A potential financial obligation that may occur, depending on the outcome of a future event.

Huntington National Bank V.Guishard

This likely refers to a specific legal case or decision involving Huntington National Bank and an individual or entity named Guishard, but without additional context, a detailed definition cannot be provided.

Deposit Slip

A document that accompanies bank deposits, detailing the amount of cash and checks being deposited as well as the deposit account number.

Personal Liability

The legal responsibility of an individual to personally satisfy debts or obligations, as opposed to the liability being limited to the assets of a business or corporation.