Suppose Warren Buffet Withdraws $1 Million from His Checking Account

question 36

Multiple Choice

Suppose Warren Buffet withdraws $1 million from his checking account at Chase Manhattan Bank.If the required reserve ratio is 20 percent,what is the maximum change in deposits in the banking system?

• A)-$5 million
• B)-$4 million
• C)-$200,000
• D)$1 million
• E)$5 million

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Definitions:

Recurrent

Occurring repeatedly or habitually, typically referring to events, phenomena, or conditions.

Epidemiological Studies

Research investigations that study how often diseases occur in different groups of people and why, primarily focused on the distribution and determinants of health and diseases in populations.

Psychological Disorders

Mental disorders characterized by patterns of behavior or thought that significantly impact multiple areas of life and create distress for the person experiencing them.

Prevalence Rates

The proportion of a particular population found to be affected by a medical condition at a specific time.