Under Required Reserves of 20%,the Maximum to Which the Money

question 26

Multiple Choice

Under required reserves of 20%,the maximum to which the money supply could be expanded by the banking system is:

• A)four times a new primary deposit
• B)five times a new primary deposit
• C)six times a new primary deposit
• D)until all of a new primary deposit has been converted to required reserves

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Definitions:

Interview

A method of gathering information by asking questions orally, either face-to-face or over the telephone.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact through controlled conditions and variables.

Population

The total number of inhabitants constituting a particular race, class, or group in a specified area.

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A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.