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.

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Definitions:

Chromosomes

Long strands of DNA housed in the nucleus of a cell, which carry genes and function in the transmission of genetic information.

Ribosomes

Cellular structures responsible for protein synthesis in living organisms.

Nucleotides

Organic molecules that serve as the building blocks of nucleic acids, like DNA and RNA, each composed of a base, a sugar, and a phosphate group.

Rhizomes

A type of underground stem that sends out roots and shoots from its nodes, often used in plant reproduction.