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

question 201

Multiple Choice

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

• A)0.01.
• B)0.10.
• C)0.20.
• D)1.00.

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Definitions:

Military Rules

Regulations and codes of conduct that govern the behaviors and actions of military personnel, often including disciplinary standards.

Institutionalized

Describes practices, organizations, or activities that have become established and accepted as normative within society or culture.

Legitimate

Something that is recognized and accepted as right, legal, or in accordance with established standards.

Justified

Considered or deemed to be appropriate or valid under the circumstances.