If Banks Were Required to Keep 100% of Deposits in Reserves

question 176

Multiple Choice

If banks were required to keep 100% of deposits in reserves, they could

• A) make more loans.
• B) make no loans.
• C) create more deposits.
• D) only use required reserves for loans.

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Definitions:

Amnesic Individuals

Persons who suffer from amnesia, a condition characterized by the inability to recall information that is stored in memory.

Recognition Task

A type of cognitive task where individuals are asked to identify previously learned or seen information from a set of options.

Memories Retrieved

The process of recalling or bringing back stored information from the past into conscious awareness.

Hippocampus

A major component of the brain, crucial for the formation of new memories and associated with learning and emotions.