If Banks Faced a 100 Percent Reserve Requirement, a $10,000

question 111

Multiple Choice

If banks faced a 100 percent reserve requirement, a $10,000 addition to banking reserves would increase the money supply by:

• A)$100.
• B)$1,000.
• C)$10,000.
• D)$100,000.
• E)$1,000,000.

---

Definitions:

Postbox Rule

A legal principle that specifies the exact moment a contract is considered accepted, which is when an acceptance is communicated, even if it has not yet been received by the offeror.

Click-Wrap

A type of agreement where acceptance of terms or conditions is done by clicking on an "I agree" button on a webpage.

Online Communications

Involves the exchange of messages, information, or documents through the internet or electronic devices.

Binding Contract

A legally enforceable agreement between two or more parties that obligates them to perform specific actions or uphold terms.