Scenario 29-2. The Monetary Policy of Tazi Is Controlled by the Country's

question 430

Multiple Choice

Scenario 29-2.
The Monetary Policy of Tazi is controlled by the country's central bank known as the Bank of Tazi. The local unit of currency is the taz. Aggregate banking statistics show that collectively the banks of Tazi hold 300 million tazes of required reserves, 75 million tazes of excess reserves, have issued 7,500 million tazes of deposits, and hold 225 million tazes of Tazian Treasury bonds. Tazians prefer to use only demand deposits and so all money is on deposit at the bank.
-Refer to Scenario 29-2. Suppose that the Bank of Tazi changes the reserve requirement to 3 percent. Assuming that the banks still want to hold the same percentage of excess reserves what is the value of the money supply after the change in the reserve requirement?

• A) 9,375 million tazes
• B) 10,000 million tazes
• C) 12,500 million tazes
• D) None of the above is correct to the nearest million tazes.

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Definitions:

Approach-Avoidance Conflict

A psychological conflict that occurs when a goal is both attractive and unattractive at the same time.

Approach-Approach Conflict

A psychological conflict that occurs when an individual must choose between two desirable goals or outcomes.

Worker Motivation

The set of internal and external factors that stimulate workers to take actions that lead to achieving a goal.

Varied Tasks

Tasks that differ in nature, complexity, or requirements, used to stimulate different cognitive processes or to prevent monotony in experimental or work settings.