Refer to the Information Provided in Scenario 10

question 210

Multiple Choice

Refer to the information provided in Scenario 10.2 below to answer the questions that follow.
SCENARIO 10.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
-Refer to Scenario 10.2. How much money will be created based on the initial $100,000 deposit?

• A) $1 million
• B) $2 million
• C) $16.67 million
• D) $50 million

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Definitions:

New France

The area colonized by France in North America during a period extending from the exploration of the Saint Lawrence River by Jacques Cartier in 1534 to the cession of New France to Spain and Britain in 1763.

Women

Female human beings, who have historically played various roles across societies, facing distinct challenges and contributing to the cultural, political, and social development of human civilization.

New France

The area colonized by France in North America during the 16th to 18th centuries, including parts of present-day Canada and the United States.

Indian Allies

Native American groups that formed alliances with European colonial powers or American settlers during various conflicts throughout North American history.