Given a Required Reserve-Deposit Ratio of 5% for All Banks

question 20

Multiple Choice

Given a required reserve-deposit ratio of 5% for all banks and assuming individuals hold no cash,total bank reserves of $400 billion can support deposits of

• A) $400 billion.
• B) $800 billion.
• C) $4,000 billion.
• D) $8,000 billion.
• E) $9,000 billion.

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Definitions:

Industrial Psychology

The application of psychological principles and research methods to improve workplace behavior and productivity.

Organizational Psychology

The scientific study of human behavior in organizational settings, focusing on workplace dynamics and productivity.

Scientific Study

The systematic investigation and exploration of natural phenomena, typically involving experimentation and observation to gather evidence and establish facts.

Job Analysis

The process of gathering, documenting, and analyzing information about job duties, responsibilities, necessary skills, outcomes, and work environment of a specific job.