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

question 39

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 the Bank of Tazi loaned the banks of Tazi 10 million tazes.Suppose also that both the reserve requirement and the percentage of deposits held as excess reserves stay the same.By how much would the money supply change?

• A)250 million tazes
• B)200 million tazes
• C)125 million tazes
• D)None of the above is correct.

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Definitions:

Aneurysm

A localized enlargement or ballooning of a blood vessel due to weakness in the vessel wall.

Cardiovascular Disease

A class of diseases involving the heart and blood vessels, including heart disease, hypertension, and stroke.

Physiological Risk

The potential for harm to bodily functions or processes, often assessed in the context of exposure to harmful substances or stressful conditions.

Hypertension

A chronic medical condition in which the blood pressure in the arteries is elevated, increasing the risk of heart disease, stroke, and other health problems.