In a Deposits-Only Monetary System with a 5% Required Reserve

question 113

Multiple Choice

In a deposits-only monetary system with a 5% required reserve ratio, a bank deposit of $1,000 could increase the total amount of bank deposits by up to:

• A) $5,000.
• B) $10,000.
• C) $20,000.
• D) $50,000.

---

Definitions:

Behavior

The actions or reactions of an individual or group in response to external or internal stimuli.

Intentions

The plans or goals that individuals form to guide their actions, often predicting behavior in various contexts.

Attitudes

Predispositions or tendencies to respond positively or negatively towards a certain idea, object, person, or situation.

Behavioral Intentions

Behavioral intentions are an individual's plans or inclinations to perform a particular action or behave in a certain way in the future.