In the Simple Deposit Expansion Model,if the Banking System Has

question 173

Multiple Choice

In the simple deposit expansion model,if the banking system has excess reserves of $75,and the required reserve ratio is 20%,the potential expansion of checkable deposits is

• A)$75.
• B)$750.
• C)$37.50.
• D)$375.

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Definitions:

Bilateral Symmetry

A body shape with right and left halves that are approximately mirror images of each other. Compare with radial symmetry.

Cephalization

The evolution of a head; the concentration of nervous tissue and sense organs at the front end of the animal.

Natural Selection

The process by which organisms that are better adapted to their environment survive and reproduce more successfully than less well-adapted organisms.

Noogenesis

The process of mental or intellectual generation, encompassing creativity, cognition, and conscious thought.