If Reserves in the Banking System Increase by $100,then Checkable

question 8

Multiple Choice

If reserves in the banking system increase by $100,then checkable deposits will increase by $500 in the simple model of deposit creation when the required reserve ratio is

• A)0.01.
• B)0.10.
• C)0.05.
• D)0.20.

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Definitions:

Tacos

A traditional Mexican dish made of a corn or wheat tortilla folded or rolled around a filling such as beef, chicken, or vegetables.

Marginal

Referring to the change in an outcome resulting from a one-unit increase in an input or variable.

Alternatives

Different options or choices available in a given situation or for a particular problem.

Consumer Satisfaction

The measure of how products and services provided by a company meet or surpass a customer's expectation.