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MMLU-Pro / 7190 / Suppose a bank has 250,000indepositliabilities, 175,000 in loans and …

Problem

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question

Suppose a bank has 250,000indepositliabilities,250,000 in deposit liabilities, 175,000 in loans and 75,000inreserves.Whatisthedirecteffectonthemoneysupplyifthebanklendsanadditional 75,000 in reserves. What is the direct effect on the money supply if the bank lends an additional 25,000? What is the direct effect on the money supply when the loan is repaid (ignoring interest)?
Plain-text mathematical notation (without MathML)
Suppose a bank has 250,000indepositliabilities, 175,000 in loans and 75,000inreserves.Whatisthedirecteffectonthemoneysupplyifthebanklendsanadditional 25,000? What is the direct effect on the money supply when the loan is repaid (ignoring interest)?
Original LaTeX notation
Suppose a bank has $250,000 in deposit liabilities, $ 175,000 in loans and $ 75,000 in reserves. What is the direct effect on the money supply if the bank lends an additional $ 25,000? What is the direct effect on the money supply when the loan is repaid (ignoring interest)?

category

economics

options

  1. The money supply has increased by $50,000
  2. The money supply has increased by $ 25,000.
  3. The money supply has decreased by $25,000
  4. There is no change in the money supply

src

stemez-Economics

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