If the Reserve Ratio Is 10% and a New Demand

question 13

Multiple Choice

If the reserve ratio is 10% and a new demand deposit of $5,000 is made,what is the maximum deposit creation possible?

• A)$500
• B)$4,500
• C)$5,000
• D)$45,000
• E)$50,000

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Definitions:

Evolutionary Psychologists

Researchers who study the psychological adaptations of humans to the changing physical and social environment, particularly from a prehistoric perspective.

Pleistocene Age

A geological epoch within the Quaternary period, characterized by several ice ages and the emergence of Homo sapiens.

Heritability

A measure of how much of the variation in a trait within a population can be attributed to genetic differences.

Genetic Similarity

The degree to which the genetic makeup of one individual resembles that of another, often influencing social and familial bonds.