Suppose You Found $10 000 Hidden Under a Rock and Deposited

question 43

Multiple Choice

Suppose you found $10 000 hidden under a rock and deposited it in a demand deposit account at your bank.If the desired reserve ratio was 10 percent,how much would your deposit add to total demand deposits?

• A)$11 000
• B)$10 000
• C)$9000
• D)$1000

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Definitions:

Oligopoly

A market structure characterized by a small number of firms dominating the market, leading to limited competition and possibly higher prices.

Imperfectly Competitive Markets

Markets where individual sellers have some control over prices due to lack of perfect competition, often characterized by product differentiation, barriers to entry, or a limited number of firms.

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, allowing for competition based on quality, price, and marketing.

Oligopoly

A market structure characterized by a small number of firms that have significant control over market prices and competition.