If Reserves Increase by $4 Million and the Required Reserve

question 100

Multiple Choice

If reserves increase by $4 million and the required reserve ratio is 8%,what is the resulting change in checkable deposits (or the money supply) ,assuming that there are no cash leakages and that banks hold zero excess reserves?

• A)$3.2 million
• B)$3.7 million
• C)$5 million
• D)$50 million

Understand the components and requirements of financial statements and proxy statements as regulated by the SEC.

Comprehend the exemptions from SEC registration requirements and the conditions under which they apply.

Grasp the operational and financial support structure of the SEC.

Acknowledge the function and influence of the Public Company Accounting Oversight Board (PCAOB) within the accounting and auditing sectors.

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Definitions:

Systematic Desensitization

A therapeutic technique used to gradually reduce fear or anxiety about a specific object, situation, or activity by slowly increasing exposure.

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Memory Loss

The inability to remember information or experiences, which can be temporary or permanent.

General Anesthetic

A type of anesthesia used to induce unconsciousness and a pain-free state during surgical procedures, affecting the entire body.