If the Desired Reserve Ratio Is 10 Percent, an Increase

question 13

Multiple Choice

If the desired reserve ratio is 10 percent, an increase in bank reserves of $1,000 can support an increase in chequing account deposits (including the original deposit) in the banking system as a whole of up to

• A)$100.
• B)$900.
• C)$1,000.
• D)$10,000.
• E)$100,000.

---

Definitions:

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.

Statistical Procedure

A method of collecting, analyzing, interpreting, and presenting data.

Variables

Elements or factors that can change and affect the outcome of a study or experiment, classified into different types such as independent, dependent, and control variables.

Five-factor Model

A framework identifying five major dimensions of human personality: openness, conscientiousness, extraversion, agreeableness, and neuroticism.