If the Required Reserve Ratio Is 0

question 134

Multiple Choice

If the required reserve ratio is 0.2,and the Fed buys $3,000 of U.S.government securities,the maximum amount by which the money supply can increase is:

• A)$200.
• B)$2,000.
• C)$600.
• D)$15,000.
• E)$1,500.

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Definitions:

Cerebral Hemispheres

The two halves of the brain, divided into left and right sides, responsible for controlling different functions and cognitive processes.

Commissural Fibers

Axonal connections between the hemispheres of the brain, facilitating communication.

Hemispheres

The two halves of the brain, each specializing in different functions but working together to process information.

White Matter

Brain tissue composed of myelinated nerve fibers (axons) that connect different brain areas and transmit nerve impulses.