Use the Following to Answer Questions

question 25

Multiple Choice

Use the following to answer questions :
-(Scenario: Assets and Liabilities of the Banking System) Look at the scenario Assets and Liabilities of the Banking System. Suppose that the reserve ratio is 10% and the Federal Reserve buys $11,000 worth of U.S. Treasury bills from the banking system. If the banking system does NOT want to hold any excess reserves, _____ will be added to the money supply.

• A)about $667,000
• B)about 111,000
• C)$250,000
• D)$1 million

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Definitions:

Free Meals

Complimentary food offerings provided by an establishment, often as a part of a promotional deal or as a benefit of service.

Functional Needs

The practical or utilitarian requirements that a product or service must satisfy for the consumer, such as durability, convenience, and efficiency.

Retain Loyal Customers

Strategies or practices aimed at keeping customers who repeatedly buy or use a brand's products or services.

Profit Margins

The percentage of revenue that remains as profit after all expenses have been deducted from total sales.