If Reserves in the Banking System Increase by $200,then Checkable

question 3

Multiple Choice

If reserves in the banking system increase by $200,then checkable deposits will increase by $500 in the simple model of deposit creation when the required reserve ratio is

• A)0.04.
• B)0.25.
• C)0.40.
• D)0.50.

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Definitions:

Inorganic Compounds

Chemical compounds that generally do not contain carbon-hydrogen bonds, including salts, metals, and minerals.

Organic Compounds

Chemical substances that contain carbon bonded to hydrogen, with a vast range of biological, industrial, and environmental applications.

Kinetic Energy

The energy that an object possesses due to its motion, calculated as one-half the mass of the object multiplied by the square of its velocity.

Uranium Oxide

A compound of uranium that is used as a nuclear fuel in reactors and as a colorant in ceramics.