If the Reserve Ratio Is 15 Percent, by How Much

question 51

Multiple Choice

If the reserve ratio is 15 percent, by how much will an additional $1000 of reserves increase the money supply?

• A) $1176
• B) $1275
• C) $5667
• D) $6667

---

Definitions:

Financial Statements

Formal records of an entity's financial activities and conditions, including the balance sheet, income statement, and cash flow statement.

Loan Requests

Applications submitted by individuals or entities to a lender, requesting the borrowing of a certain amount of money.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, providing an overview of a financial situation in a standardized format.

Current Asset

Current assets are short-term financial resources that are expected to be converted into cash, sold or consumed within one year or within the business's operating cycle, whichever is longer.