Following a New Deposit of $50 When the Desired Reserve

question 81

Multiple Choice

Following a new deposit of $50 when the desired reserve ratio is 10 percent,the maximum increase in the assets of commercial banks will be

• A)$50.
• B)$400.
• C)$500.
• D)$40,000.

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Definitions:

Teleological View

A perspective that interprets actions or events in terms of their purpose or goal rather than their cause.

Mechanistic

Pertaining to a viewpoint or theory that likens complex systems to mechanical objects, assuming all phenomena result from physical forces and can be explained by the laws of physics.

Kant's Two Worlds

Refers to Immanuel Kant's distinction between the phenomenal world (which we can know through senses) and the noumenal world (the thing in itself, which we cannot directly know).

World of Nature

The physical universe and all its natural processes and phenomena, excluding human creations and interventions.