Solved

If the Reserve Ratio Is 5 Percent,$1,000 of Additional Reserves

Question 30

Multiple Choice

If the reserve ratio is 5 percent,$1,000 of additional reserves can create

A) $200 of new money.
B) $2,000 of new money.
C) $20,000 of new money.
D) None of the above is correct.

Related Questions

Q15: If the Fed decreases reserve requirements, the

Q17: When the Fed conducts open-market purchases,<br>A)it buys

Q23: Just after the terrorist attack on September

Q28: Changes in the quantity of money affect<br>A)interest

Q29: Which of the following actions would have

Q35: If the reserve ratio is 12.5 percent,the

Q64: Designers of the Federal Reserve System were

Q136: Other things the same, if banks decide

Q137: As the reserve ratio increases, the money

Q201: When the Fed conducts open-market sales,<br>A) it