If an Increase of $10 Million in Excess Reserves Increases

question 127

Multiple Choice

If an increase of $10 million in excess reserves increases checkable deposits in the banking system by a maximum of $200 million,the required reserve ratio is:

• A)0.
• B)5 percent.
• C)10 percent.
• D)20 percent.
• E)2 percent.

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Definitions:

Tegmentum

A part of the brainstem that is involved in movement and arousal, containing the reticular formation and various nuclei.

Tectum

Roof of the midbrain.

Superior Colliculi

Paired structures in the midbrain that are involved in visual and auditory reflexes and coordinate head and eye movements.

Cerebrum

The cerebrum is the largest part of the brain, responsible for higher brain functions such as thought, action, reasoning, emotion, and memory.