If the Reserve Ratio Is 4 Percent,then $81,250 of New

question 26

Multiple Choice

If the reserve ratio is 4 percent,then $81,250 of new money can be generated by

• A)$325 of new reserves.
• B)$3,250 of new reserves.
• C)$20,312.50 of new reserves.
• D)$2,031,250 of new reserves.

---

Definitions:

Administrators

Individuals who are responsible for managing and overseeing the operations of organizations or parts of organizations, ensuring that they function efficiently.

Risk Taking Behavior

The propensity to engage in activities that have the potential to result in significant loss or gain.

Revenue and Expense Analysis

An examination of the income generated and costs incurred by a business, aiming to understand financial health and performance.

Management Function

The activities and duties that managers engage in to plan, organize, lead, and control an organization's resources effectively.