If the Reserve Ratio Is 20 Percent,then $100 of New

question 19

Multiple Choice

If the reserve ratio is 20 percent,then $100 of new reserves can generate

• A)$60 of new money in the economy.
• B)$250 of new money in the economy.
• C)$500 of new money in the economy.
• D)$2,000 of new money in the economy.

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Definitions:

Net Change Column

A column often found in financial reporting that displays the difference between the current period's balance and the previous period's balance.

Daily Stock Report

A document or publication that provides updates, statistics, and analyses on the stock market's performance, typically published every business day.

Par Value

The nominal value of a bond or stock as declared by the issuer.

Dividend Paid

The amount distributed by a corporation to its shareholders from its earnings based on the number of shares each shareholder owns.