If the Reserve Ratio Is 10 Percent, Banks Do Not

question 153

Multiple Choice

If the reserve ratio is 10 percent, banks do not hold excess reserves, people hold only deposits and no currency, then when the Fed sells $10 million worth of bonds to the public, bank reserves

• A)increase by $1 million and the money supply eventually increases by $10 million.
• B)increase by $10 million and the money supply eventually increases by $100 million.
• C)decrease by $1 million and the money supply eventually increases by $10 million.
• D)decrease by $10 million and the money supply eventually decreases by $100 million.

---

Definitions:

Anti-Bias Curriculum

An educational approach designed to challenge prejudices and promote understanding and respect for diversity among all children.

Self-Esteem

An individual's subjective evaluation or perception of their own worth, encompassing beliefs about oneself as well as emotional states.

Self-Concept

An individual's perception of themselves, including beliefs about one’s own abilities, appearance, and personality.

Self-Image

One's personal perception or mental picture of themselves, including beliefs about appearance, abilities, and worth.