If You Deposited $100 of Your Currency into a Bank

question 5

True/False

If you deposited $100 of your currency into a bank, and the reserve ratio were 5 per cent, then the banking system could create as much as $1900 in additional money.

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Definitions:

Stratification

The hierarchical arrangement or classification of society into various layers based on factors such as socio-economic status, race, education, or power.

Social Mobility

The ability for individuals or families to move within or between social strata in a society, which can result in changing social status.

Mincome Experiment

A social experiment conducted in the 1970s in Manitoba, Canada, testing the effects of providing citizens with a guaranteed minimum income.

Guaranteed Income

A system of social welfare that proposes that all citizens receive an unconditional sum of money, regardless of their employment status.