Based on the Information in the Table, What Quantity of Reserves

question 95

Multiple Choice

Based on the information in the table, what quantity of reserves would the Federal Reserve have had to inject into the economy in 1932 to prevent the money supply from falling, given that the public increased the amount of currency it held and that banks increased the reserve-deposit ratio?

• A) $0.30 billion
• B) $0.66 billion
• C) $0.89 billion
• D) $3.54 billion

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Definitions:

Tort

A civil wrong or breach of duty to another person, recognized by law as grounds for a lawsuit, resulting in an injury or harm that warrants compensation.

Intentional Tort

A wrongful act done on purpose that causes harm to another, including acts such as assault, battery, and defamation, as distinguished from negligence.

False Imprisonment

The intentional confinement or restraint of a person against his or her will.

Tort Claim

A legal claim arising from an act or omission that causes injury or harm to another, allowing the injured party to seek compensation.