Scenario 14-2 Imagine That Kristy Deposits $10,000 of Currency into Her Checking

question 46

Multiple Choice

Scenario 14-2
Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%.
-Refer to Scenario 14-2.As a result of Kristy's deposit,checking account deposits in the banking system as a whole (including the original deposit) could eventually increase up to a maximum of

• A)$8,000.
• B)$10,000.
• C)$50,000.
• D)$100,000.

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Definitions:

If-then Statement

A logical conditional statement stating that if one thing happens, then another will as well, expressing a causal or inferential relationship.

Asserted

Stated confidently or declared as true.

Disjunctive Syllogism

A logical rule that concludes one disjunct must be false if the other is true, usually in the form: Either A or B; not A; therefore, B.

Unstated Premise

A component of an argument that is not expressed but is assumed to be true for the argument to hold.