Use the Following to Answer Questions

question 112

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. Suppose that the reserve ratio is 10% and the Fed buys $100,000 worth of U.S. Treasury bills from the banking system. If the banking system does NOT want to hold any excess reserves, _____ will 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:

Tax Vouchers

Certificates or receipts used to claim a reduction in tax liability or to direct tax revenues to specific purposes or programs.

Aged, Blind, Disabled

is a categorization used in social policy to refer to individuals who qualify for certain types of government assistance due to their age, visual impairment, or disabilities.

Supplemental Security Income

Supplemental Security Income is a United States government program that provides additional financial support to elderly, blind, or disabled individuals with limited income and resources.

Medicaid

A health care program in the United States that provides medical assistance to individuals and families with low income and resources, jointly funded by the state and federal governments.