If the Reserve Requirement Is 25%, a New Deposit of $1,000

question 64

Multiple Choice

If the reserve requirement is 25%, a new deposit of $1,000 leads to a potential increase in the money supply of:

• A) $4,000.
• B) $250.
• C) $10,000.
• D) $5,000.

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Definitions:

Unpaid Balances

Amounts owed that have not been paid by the due date.

Unsolicited Merchandise

Goods sent to a person without their request, often with the implication that payment is expected if the goods are used or not returned.

Gift

A voluntary transfer of property or funds from one person to another without consideration or expectation of return.

Unauthorized Charges

Transactions made on a payment card without the cardholder's consent or approval, often indicative of fraud.