Use the following to answer questions .
Exhibit: Deposit Expansion Stages

-(Exhibit: Deposit Expansion Stages) What is the value of $G (the total new required reserves)?
A) $1,000
B) $4,000
C) $5,000
D) $6,000

Question

Use the following to answer questions .
Exhibit: Deposit Expansion Stages
 
-(Exhibit: Deposit Expansion Stages) What is the value of $G (the total new required reserves)?
A) $1,000 
B) $4,000 
C) $5,000 
D) $6,000

Quizplus · Accepted Answer

The total new required reserves are calculated based on the initial deposit and the reserve requirement ratio. If the reserve requirement is 10%, for example, and the initial deposit is $10,000, then the required reserves would be $1,000.

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