Use the Following to Answer Questions

question 200

Multiple Choice

Use the following to answer questions :
Scenario: Money Creation
The reserve requirement is 20%. Leroy receives $1,000 as a graduation present and deposits the money in his checking account. The bank does NOT want to hold excess reserves.
-(Scenario: Money Creation) Look at the scenario Money Creation. By how much did the monetary base change?

• A)$0
• B)$800
• C)$1,000
• D)$4,000

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Definitions:

Mortise-and-Tenon System

A woodworking or masonry joint that connects two pieces of material through a cutout (mortise) and a projecting piece (tenon) that fits inside the cutout.

Kamakura Period

A period in Japanese history (1185-1333) marked by the rise of the samurai class and the establishment of feudalism.

Sociopolitical Force

A term referring to the influence and interplay of societal and political factors on events and behaviors.

Shogunate

The Japanese military government of the 12th through 19th centuries.