On a Certain Date, the Banking System Had $40 Billion

question 5

Multiple Choice

On a certain date, the banking system had $40 billion in excess reserves. The legally required reserve ratio was 20 percent. Potentially, if these funds were loaned and eventually the entire amount re-deposited with a bank, the banking system as a whole could increase the money supply by

• A) a maximum of $40 billion.
• B) a maximum of $160 billion.
• C) a maximum of $200 billion.
• D) more than $200 billion.

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Definitions:

Form

Refers to the shape, structure, or visible configuration of an object.

Size

The physical dimensions or magnitude of an object or part.

Profile-Of-A-Surface Tolerance

A geometric dimensioning and tolerancing specification that controls the form, orientation, and location of surfaces across the entire feature.

Straight, Flat Surfaces

Planar extents that are even and uniform, without curvature, essential in manufacturing and construction for accurate assembly and dimensional consistency.