If the Desired Reserve/deposit Ratio Equals 0

question 86

Multiple Choice

If the desired reserve/deposit ratio equals 0.10, then every dollar of currency in bank reserves supports ________ of deposits and the money supply, while every dollar of currency held by the public contributes ________ to the money supply.

• A)$1; $10
• B)$0.10; $1
• C)$1; $0.10
• D)$10; $1

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Definitions:

Nuclear Families

A family structure consisting of two parents (of opposite sex or same) and their children, living together as a single unit.

Remarried Fathers

Describes men who have entered into a subsequent marriage after divorce or being widowed, often involving stepchildren or blended family dynamics.

Custodial Mother

A mother who has been granted physical and/or legal custody of a child by a court of law.

Financial Disadvantage

A state or condition where individuals or groups have less economic resources and opportunities than others in society.