Table 10-4 The Following Information Pertains to the Bank of Moncton

question 57

Multiple Choice

Table 10-4
The following information pertains to the Bank of Moncton.
-Refer to the Table 10-4.Assume that all other banks hold only the required 4 percent of deposits as reserves,and that people hold only deposits and no currency.If the Bank of Moncton decides to hold reserves of 4 percent,by how much would the economy's money supply increase?

• A) $30,000
• B) $35,000
• C) $42,000
• D) $45,000

---

Definitions:

Athletic

Relating to athletes or the physical skills, competencies, and attributes required in sports or physical activities.

Sloppy

Lacking care, precision, or neatness in execution or appearance.

Assertive

The quality of being confident and self-assured in stating one's opinions or needs directly and respectfully.

Extraversion

A personality trait characterized by outgoingness, high energy, and sociability, contrasting with introversion.