Consider a New Deposit of $10 000 to the Canadian

question 67

Multiple Choice

Consider a new deposit of $10 000 to the Canadian banking system.The bank that initially receives this deposit will find itself with

• A)no excess reserves if there is no reserve requirement.
• B)$1000 of excess cash reserves if its target reserve ratio is 10%.
• C)$2000 of excess cash reserves if its target reserve ratio is 10%.
• D)$8000 of excess cash reserves if its target reserve ratio is 20%.
• E)$10 000 of excess cash reserves if its target reserve ratio is 100%.

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Definitions:

Consumer Income

The total earnings or financial inflow that an individual receives from various sources, including wages, investments, and benefits, which determines their purchasing power.

Serious Public Concern

A matter that is of significant interest or worry to the general public often requiring government attention or action.

Oil Depletion

The reduction of available oil resources due to extraction and consumption over time.

Political Leaders

Political leaders are individuals who hold positions of authority in government and have the power and responsibility to make decisions affecting public policy and governance.