Suppose Warren Buffet Withdraws $1 Million from His Checking Account

question 36

Multiple Choice

Suppose Warren Buffet withdraws $1 million from his checking account at Chase Manhattan Bank.If the required reserve ratio is 20 percent,what is the maximum change in deposits in the banking system?

• A)-$5 million
• B)-$4 million
• C)-$200,000
• D)$1 million
• E)$5 million

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Definitions:

Nature

The inherent features of something or the physical world and everything in it, including plants, animals, the landscape, and other features and products of the earth.

Nurture

The influence of environmental factors and care given to the development and growth of an individual.

Behavioral Genetics

The field of study that examines the role of genetic and environmental influences on behaviors.

Genetic Counseling

A professional service that provides individuals and families with information on the genetic aspects of illnesses, inheritance patterns, and risks.