If a Banking System Receives an Initial Deposit of $150

question 60

Multiple Choice

If a banking system receives an initial deposit of $150, 000 and the reserve requirement is 40 percent, the total deposit in the banking system (including the initial deposit) can be expanded by _____.

• A)$375, 000
• B)$150, 000
• C)$60, 000
• D)$250, 000
• E)$450, 000

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Definitions:

Contest

A competition where individuals or teams compete against each other to win based on skill, ability, or some other criterion.

Victory

The achievement of winning or overcoming an obstacle, competition, or conflict.

Charismatic

Possessing a special magnetic charm or appeal that inspires devotion in others.

Leader

An individual who guides or directs a group, organization, or country.