The Reserve Requirement Ratio Is 10 Percent

question 227

Multiple Choice

The reserve requirement ratio is 10 percent.Which of the following pairs of changes would both allow a bank to lend out an additional $10,000?

• A) the Fed buys a $10,000 bond from the bank or someone deposits $10,000 in the bank
• B) the Fed buys a $10,000 bond from the bank or the Fed lends the bank $10,000
• C) the Fed sells a $10,000 bond to the bank or someone deposits $10,000 in the bank
• D) the Fed sells a $10,000 bond to the bank or the Fed lends the bank $10,000

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Definitions:

Wait Time

The duration a person must wait before receiving a service or proceeding with an activity, often analyzed to improve efficiency in various operations.

Independent

Not influenced or controlled by others; in statistics, refers to variables that are not affected by other variables in the analysis.

Blood Types

Categories of blood based on the presence or absence of antibodies and inherited antigenic substances on the surface of red blood cells.

Group

A number of individuals assembled together or having some unifying relationship.