Use the Following to Answer Questions

question 65

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. If the reserve ratio is 5% and the banking system does NOT want to hold excess reserves, how much more can 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:

Voiced Sympathy

Expressing feelings of pity and sorrow for someone else's misfortune.

Communism

A political and economic ideology aiming for a classless society where the means of production are communally owned and everyone contributes and receives according to their ability and needs.

Civil Liberties

Basic rights and freedoms guaranteed to individuals, usually protected by law or constitutional provisions, against government infringement.

Cold War

The period of geopolitical tension between the Soviet Union and the United States and their respective allies, from the end of World War II until the dissolution of the Soviet Union in 1991, characterized by mutual suspicion, propaganda, and proxy wars but not direct military conflict between the two superpowers.