In the Simple Deposit Expansion Model, If the Desired Reserve

question 164

Multiple Choice

In the simple deposit expansion model, if the desired reserve ratio is 10 percent and the Bank of Canada increases reserves by $100, chequable deposits can potentially expand by ________.

• A) $100
• B) $250
• C) $500
• D) $1000

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Definitions:

Labor Contract

The formal, written document that spells out the relationship between the union and management for a specified period of time—usually two or three years.

Management

A process designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing environment.