If the Target Reserve Ratio in the Banking System Is

question 2

Multiple Choice

If the target reserve ratio in the banking system is 1%,there is no cash drain,and there are no excess reserves,a new deposit of $1 will lead to an expansion of the money supply of

• A)$0.01.
• B)$1.10.
• C)$1.00.
• D)$10.00.
• E)$100.00.

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Definitions:

Bargaining Power of Buyers

The ability of buyers to negotiate lower prices or better terms with sellers, influenced by factors such as market competition and buyer concentration.

Threat of New Entrants

A term used in industry analysis referring to the possibility and ease with which new competitors can enter the market and impact existing businesses.

Degree of Rivalry

The intensity of competition among entities within the same industry or market.

Sociocultural

Relating to the combination of social and cultural factors that influence behaviors, values, and attitudes in a society.