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.

---

Definitions:

Buying Decision

refers to the process or outcome when a consumer or organization chooses to purchase a product or service after considering various factors.

Low-involvement Products

Goods that require minimal thought and effort from the consumer before purchase due to their routine nature or low price.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.