If Reserves in the Banking System Increase by $100, Then

question 110

Multiple Choice

If reserves in the banking system increase by $100, then chequable deposits will increase by $500 in the simple model of deposit creation when the desired reserve ratio is ________.

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

---

Definitions:

Another Language

Refers to a language that is not one's native or primary language, often learned for communication in diverse settings.

Intercultural Communication

The process of sending and receiving messages between people from different cultural backgrounds.

Effective Communication

The process of exchanging information in a way that is clearly understood by all parties involved.

Multicultural Messages

Communications designed to be effective across diverse cultures, taking into account differences in values, norms, and communication styles.