The Fed Increases Bank Reserves in the System by $75

question 2

Multiple Choice

The Fed increases bank reserves in the system by $75 million. If there are no drains the expected change in bank deposits is

• A) $82.5 million.
• B) $945 million.
• C) $750 million.
• D) $1,500 million.
• E) $655 million. (1/0.10)  $75 million

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Definitions:

Process Costing

An accounting methodology used to allocate costs to units of product in processes where the products are indistinguishable from each other.