Assume There Are No Excess Reserves in the Banking System

question 72

Multiple Choice

Assume there are no excess reserves in the banking system when the reserve requirement is 20%.The purchase by the Fed of $10,000 in U.S.government securities from Academy National Bank has the potential of ultimately increasing the money supply by a total of

• A)$2,000
• B)$8,000
• C)$10,000
• D)$20,000
• E)$50,000

---

Definitions:

Peacekeeper

An individual or force involved in the prevention, mitigation, or resolution of conflict within or between communities or nations.

Interactive Processes

Dynamic activities or operations involving two or more entities (such as people or systems) that affect or influence each other.

Family Nurturing

The process of promoting and supporting the physical, emotional, social, and intellectual development of a child from infancy to adulthood within the family context.

Family Structure

The makeup of a family, including the relationships and roles of its members.