If the Required Reserve Ratio Is 10 Percent,an Increase in Bank

question 213

Multiple Choice

If the required reserve ratio is 10 percent,an increase in bank reserves of $1,000 can support an increase in checking account deposits (including the original deposit) in the banking system as a whole of up to

• A)$100.
• B)$1,000.
• C)$10,000.
• D)$100,000.

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Definitions:

Electrical Transmission

The process of conveying electricity over a distance, typically from a power plant to the consumer using transmission lines.

Hernia

The protrusion of an organ through the wall that usually contains it, such as a hiatal or inguinal hernia.

Muscle

Tissue in the body composed of fibers capable of contracting to produce movement or maintain the posture of the body.

Meningitis

An inflammation of the protective membranes covering the brain and spinal cord, potentially caused by infection (viral, bacterial, or fungal).