If Checking Deposits Increase by $6,000 After All Rounds of the Money-Creation

question 47

Multiple Choice

If checking deposits increase by $6,000 after all rounds of the money-creation process when the Fed buys $1,200 worth of U.S.government securities,the maximum value of the required reserve ratio is

• A)5
• B)0.75
• C)0.2
• D)1.2
• E)1.0

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Definitions:

Convert

To change something into a different form or properties, often referring to changing beliefs, values, or data formats.

Defector

An individual who renounces allegiance to one's country, cause, or organization, typically in favor of an opposing one.

Doubter

A person inclined to skepticism or lacking in conviction, often questioning the truth or reliability of something.

Champion

An individual who passionately supports, promotes, or defends a particular cause, idea, or project, often inspiring others to do the same.