If the required reserve ratio is 10 percent, a $100 deposit will ultimately allow the banking system to create how much money?
A. $190.
B. $90.
C. $1,000.
D. $100.
Answer: C
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What is measured by the price elasticity of supply?
A) The price elasticity of supply measures how responsive producers are to changes in the price of other goods. B) The price elasticity of supply measures how responsive producers are to changes in income. C) The price elasticity of supply measures how responsive producers are to changes in the price of a product. D) The price elasticity of supply is a measure of the slope of the supply curve. E) The price elasticity of supply measures how responsive producers are to changes in the cost of producing a product.
A side effect of an action that affects the well-being of third parties is
A. a marginal cost. B. a marginal private benefit. C. an externality. D. a and b E. all of the above
During a banking crisis during the period of free banking, the unexpected surge in the demand for money in the form of specie would cause bankers to call in loans which would, in turn, squeeze credit, slow output and increase unemployment
Indicate whether the statement is true or false
When was the closest the United States has ever gotten to hyperinflation?
a. During the Great Depression b. During the Great Recession c. During the Civil War d. During World War II