Suppose You Found $1,000 Hidden in Your Mattress and Deposited

question 207

Multiple Choice

Suppose you found $1,000 hidden in your mattress and deposited it in a demand deposit account at your bank. If the reserve requirement was 20 percent, the deposit would directly create ____ in excess reserves and ultimately lead to a ____ total increase in the money supply, if all banks in the system lend out 100 percent of their excess reserves.

• A)​$800; $4,000
• B)​$800; $5,000
• C)​$1,000; $4,000
• D)​$1,000; $5,000

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Definitions:

Jim Carrey

A Canadian-American actor and comedian known for his highly energetic slapstick performances and versatility in both comedic and dramatic roles.

American Auteur

Refers to an American film director who is considered the author of their movies, with a distinctive style or theme across their work.

Western

A genre of films, television series, and literature focused on stories set primarily in the late 19th century American Old West, characterizing the frontier and the westward expansion.

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An American film director known for his work on Westerns and adaptations of classic 20th-century American novels, celebrated for his visual style, depiction of American ideals and history, and frequent collaborations with actor John Wayne.