If the Reserve Ratio Is 20% and a New Demand

question 66

Multiple Choice

If the reserve ratio is 20% and a new demand deposit of $10,000 is made,what is the maximum deposit creation possible?

• A)$1,500
• B)$10,000
• C)$15,000
• D)$40,000
• E)$50,000

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Definitions:

Jean-Auguste-Dominique Ingres

A French Neoclassical painter known for his technical precision and strong emotion, as seen in works like "The Grande Odalisque".

Hudson River School

A mid-19th century American art movement embodied by a group of landscape painters influenced by romanticism, focusing on the Hudson River Valley.

Landscape Painting

A genre of painting that depicts natural scenery such as mountains, valleys, trees, rivers, and forests, emphasizing the beauty of the natural world.

Colorist Painting

A style of painting where color is the main focus, often used to convey emotions and atmospheres.