With a Reserve Ratio of 10%, the Banking System Can

question 102

Multiple Choice

With a reserve ratio of 10%, the banking system can create ____ with each dollar of deposits.

• A)$1
• B)$2
• C)$5
• D)$10

---

Definitions:

Phrase

A group of words that express a concept and can function as a unit within a sentence, lacking a subject and predicate to form a complete thought.

Hierarchical Structure

An organizational system where entities are arranged in a ranked or graded fashion, from the highest to the lowest levels.

Morphemes

Morphemes are the smallest grammatical units in a language, capable of conveying meaning, such as "un-", "-ing", or "cat".

Sentences

Structures of words that express complete thoughts or ideas, following grammatical rules.