The Reserve Ratio Is 10 Percent,banks Do Not Hold Excess

question 61

Multiple Choice

The reserve ratio is 10 percent,banks do not hold excess reserves,and people hold only deposits and no currency.When the Fed sells $20 million worth of bonds to the public,bank reserves

• A)increase by $20 million and the money supply eventually increases by $20 million.
• B)increase by $20 million and the money supply eventually increases by $200 million.
• C)decrease by $2 million and the money supply eventually increases by $20 million.
• D)decrease by $20 million and the money supply eventually decreases by $200 million.

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Definitions:

Head Position

The orientation or angle of the head in relation to the body, which can influence perception, balance, and communication.

Source Of Sound

The point or object from which sound waves originate, which can be anything that vibrates to create audio frequencies.

Basilar Membrane

A key structure in the cochlea of the inner ear, which plays a crucial role in sound perception by responding to different frequencies.

Nerve Deafness

A type of hearing loss that occurs when the auditory nerve or the hair cells in the cochlea are damaged, making it hard to send sound signals to the brain.