Solved

If the Reserve-Deposit Ratio Is 20% and the Banking System

Question 124

Multiple Choice

If the reserve-deposit ratio is 20% and the banking system receives an additional $10 million in reserves,bank deposits will increase by

A) $4 million.
B) $10 million.
C) $50 million.
D) $250 million.
E) $400 million.

Related Questions

Q114: Monetary policy decisions by the Bank of

Q115: Growth in the money supply is typically

Q116: If bank reserves are 200,the public holds

Q117: Money serves as a unit of account

Q118: Bank reserves are<br>A) currency and customer chequing

Q119: In Macroland,currency held by the public is

Q120: Suppose the banking system has $100,000 in

Q121: The Bank of Canada first began operation

Q122: Use the information in the table below

Q123: If the reserve-deposit ratio is less than