Multiple Choice
If the reserve-deposit ratio is 10% and the banking system receives an additional $10 million in reserves,bank deposits will increase by
A) $4 million.
B) $10 million.
C) $40 million.
D) $100 million.
E) $250 million.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q95: Functions of the Bank of Canada include
Q96: The money supply is 1,500,of which 500
Q97: The profit gained by the Bank of
Q98: Cash and similar assets held to meet
Q99: The unique contribution of the Bank of
Q101: The money supply in Econland is 1,500,and
Q102: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB3713/.jpg" alt=" -The table above
Q103: The measure of the speed at which
Q104: After the central bank increases reserves in
Q105: If the reserve-deposit ratio falls,then<br>A) the ability