If the Reserve Ratio Is 100-Percent,then a New Deposit of $1000

question 51

Multiple Choice

If the reserve ratio is 100-percent,then a new deposit of $1000 into a bank account

• A)eventually increases the money supply by $1000.
• B)leaves the size of the money supply unchanged.
• C)eventually decreases the size of the money supply by $1000.
• D)eventually increases the money supply by $2000.

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Definitions:

Diffusion

The process by which an innovation or idea spreads within a society or from one society to another over time.

Technological Advance

The process of developing new and better ways of doing things, particularly in areas like science, engineering, and manufacturing.

Invention

An invention is a unique or novel device, method, composition, or process that extends the boundaries of human knowledge or capability.

Innovation

Converting a thought or discovery into a valuable offering or solution that attracts customer investment.