Suppose the Banking System Has No Excess Reserves,a Reserve Requirement

question 330

Multiple Choice

Suppose the banking system has no excess reserves,a reserve requirement ratio of 10%,and $50 billion of required reserves.What is the total checkable deposits in the banking system?

• A)$50 billion
• B)$500 billion
• C)$450 billion
• D)$550 billion
• E)$650 billion

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Definitions:

Mineral Deposits

Concentrations of minerals within the earth's crust that are of economic interest due to their potential for mining.

Oil and Gas

Natural hydrocarbons that are extracted from the Earth and used as fuels and in a variety of industrial applications.

Relative-Dating Principles

A set of techniques used in geology to determine the chronological order of events by analyzing rock layers and structures without determining their exact age.

Carbon-14 Ages

An age estimate of an organic material based on the measurement of the radioactivity of its carbon-14 content.