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:

Natural Language

Human languages, including both spoken and written forms, capable of expressing an infinite variety of ideas and emotions.

Logic of Declarative Statements

The formal principles governing the truth or falsehood of statements that declare facts.

Conditional

A grammatically correct construction used to assert that if an antecedent statement is true, then a consequent statement is true.

Symbolic Logic

A formal system of logic that uses symbols to represent logical expressions and operations, facilitating the examination of arguments.