Use the Following to Answer Questions

question 164

Multiple Choice

Use the following to answer questions:
-(Table: Assets and Liabilities of the Banking System) Refer to Table: Assets and Liabilities of the Banking System.If the reserve ratio is 8% and the banking system does NOT want to hold excess reserves,how much more can be added to the money supply?

• A) about $667000
• B) about $111000
• C) $250000
• D) $1 million

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Definitions:

FTC

The Federal Trade Commission, a U.S. federal agency responsible for consumer protection and the prevention of anti-competitive business practices.

Negotiable Installment Notes

Debt instruments that promise repayments in a series of payments and are transferable to others.

Finance Companies

Businesses that provide loans to individuals or corporations, excluding banks and other traditional financial institutions.

Forgery

The act of fraudulently making, altering, or falsifying a document or other object with the intent to deceive or defraud.