If Banks Desired a 100 Percent Reserve Ratio,how Many Times

question 25

Multiple Choice

If banks desired a 100 percent reserve ratio,how many times total reserves in the system equals the money supply?

• A)0.01
• B)0.1
• C)1
• D)10

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Definitions:

Friendly Fire

Incidents in which persons are inadvertently harmed or killed by forces from their own side during an armed conflict or military operation.

Bailment

The legal relationship established when one person (the bailor) entrusts their personal property to another (the bailee) for a specific purpose, with the expectation of return.

Bailee

A person or entity that temporarily holds property belonging to another under a bailment agreement, responsible for the safekeeping of the property.

Deliver

To physically transfer an item or to fulfill a promise or obligation.