Suppose You Withdraw $500 from Your Checking Account Deposit and Bury

question 16

Multiple Choice

Suppose you withdraw $500 from your checking account deposit and bury it in a jar in your back yard.If the required reserve ratio is 10 percent,checking account deposits in the banking system as a whole could drop up to a maximum of

• A)$0.
• B)$50.
• C)$500.
• D)$5,000.

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Definitions:

Gratuitous Assignment

The act of transferring rights or interests from one party to another without requiring any consideration or payment in return.

Revocable

Capable of being revoked, withdrawn, or cancelled, often referring to trusts, licenses, or permissions.

Effective Delivery

The successful transfer of a document or item to its intended recipient in a manner that meets legal or contractual obligations.

Gratuitous Assignment

The transfer of rights or property from one party to another without any exchange of value or consideration.