The Following Is Information About a Banking System: New Currency

question 123

Multiple Choice

The following is information about a banking system: new currency deposited in the system = $40 billion;desired reserve ratio = 20%;excess reserves prior to the new currency deposit = $0.
-Refer to the above information.The total demand deposit after the expansion of the money supply through loans is:

• A) $160 billion.
• B) $200 billion.
• C) $40 billion.
• D) $128 billion.

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Definitions:

Ultradian

Referring to recurrent periods or cycles repeated throughout a 24-hour day, such as the stages of sleep.

Infradian

Referring to biological rhythms with cycles that are longer than 24 hours, such as menstrual cycles or seasonal behaviors.

Prefrontal Cortex

The anterior part of the frontal lobes of the brain, involved in complex cognitive behavior, decision making, and moderating social behaviour.

Brodmann's Areas

Regions of the cerebral cortex defined by their cytoarchitectonic characteristics and associated with different brain functions.