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

question 38

Multiple Choice

If reserves in the banking system increase by $100,then checkable deposits will increase by $1,000 in the simple model of deposit creation when the required reserve ratio is

• A)0.01.
• B)0.10.
• C)0.05.
• D)0.20.

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Definitions:

Aldehyde Treatment

A chemical process involving the reaction of an aldehyde group, often resulting in the introduction of new functional groups.

LiAlH4

Lithium aluminium hydride, a powerful reducing agent widely employed in organic chemistry for reducing carbonyl compounds to alcohols.

Primary Alcohol

An alcohol with the hydroxyl group (-OH) attached to a carbon atom that is connected to only one other carbon atom.

Grignard-Based Synthesis

A method of forming carbon-carbon bonds by reacting Grignard reagents (organomagnesium compounds) with electrophiles, crucial in the formation of alcohols, carboxylic acids, and other functional groups.