If the Reserve Ratio Is 12

question 4

Multiple Choice

If the reserve ratio is 12.5 percent,then $2,000 of additional reserves can create up to

• A)$8,000 of new money.
• B)$16,000 of new money.
• C)$32,000 of new money.
• D)None of the above is correct.

---

Definitions:

Correlate

To possess a reciprocal relationship or link, where one entity influences or is contingent upon another.

Conscientiousness

A character quality marked by being well-organized, reliable, and having a profound dedication to responsibility.

Self-Discipline

The capability to manage one's emotions and conquer personal shortcomings, as well as the strength to follow what one believes is correct, even when faced with temptations to give it up.

Conscientiousness

is a personality trait characterized by thoroughness, diligence, and the desire to do a task well.