In the Simple Deposit Expansion Model,if the Required Reserve Ratio

question 118

Multiple Choice

In the simple deposit expansion model,if the required reserve ratio is 20 percent and the Fed increases reserves by $100,checkable deposits can potentially expand by

• A)$100.
• B)$250.
• C)$500.
• D)$1,000.

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Definitions:

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The degree of exactness with which a value is expressed or measured in computing and mathematics.

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The degree to which the result of a computation conforms to the correct value, affected by various factors including floating-point representation and algorithmic design.

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Elements in programming that are used to store data that can be changed during the execution of a program.