If Reserves in the Banking System Increase by $100, Then

question 1

Multiple Choice

If reserves in the banking system increase by $100, then chequable deposits will increase by $667 in the simple model of deposit creation when the desired reserve ratio is ________.

• A) 0.01
• B) 0.05
• C) 0.15
• D) 0.20

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Metrics used to evaluate the effectiveness, efficiency, and progress of a project or employee towards achieving objectives.

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