Assume That the Reserve Requirements Ratio Is 15

question 4

Multiple Choice

Assume that the reserve requirements ratio is 15%. An initial injection of $150 million could result in a maximum change in the money supply of

• A)$150 million.
• B)$1 billion.
• C)$1 million.
• D)$22.5 million.

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Definitions:

Hyperpolarized

The condition of the neuron membrane when the inside of the cell becomes more negative than its resting potential.

GABA

Gamma-Aminobutyric Acid, a neurotransmitter in the brain that inhibits nerve transmission, playing a key role in reducing neuronal excitability throughout the nervous system.

Chemoreceptors

Sensory receptors in organisms that detect chemical stimuli in the environment, playing a key role in taste and smell.

Gustation

The sense of taste, or the act of discerning flavors through receptors in the mouth.