The Following Is Information About a Banking System: New Currency

question 123

Multiple Choice

The following is information about a banking system: new currency deposited in the system = $40 billion;desired reserve ratio = 20%;excess reserves prior to the new currency deposit = $0.
-Refer to the above information.The total demand deposit after the expansion of the money supply through loans is:

• A) $160 billion.
• B) $200 billion.
• C) $40 billion.
• D) $128 billion.

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Definitions:

Battery

The intentional and unlawful physical contact or harm against another person without their consent.

Self-Defense

A legal principle that allows individuals to use reasonable force to protect themselves from physical harm.

Punitive Damages

Financial remuneration provided to a victim that exceeds the required amount for covering losses, aimed at penalizing the offender.

Pain And Suffering

Legal term that refers to the physical or emotional distress resulting from an injury.