Use the Following Example to Answer the Following Questions

question 104

Multiple Choice

Use the following example to answer the following questions:
Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.Assume that this institution has a required reserve ratio of 25 percent.
-As a result of this deposit,what is the maximum amount the bank can hold as loans?

• A) $0
• B) $18,750
• C) $25,000
• D) $31,250
• E) $100,000

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Definitions:

Schema

A cognitive framework or concept that helps organize and interpret information, based on one's accumulated knowledge and experience.

Existing Schema

A cognitive framework or concept that helps organize and interpret information based on known ideas and experiences.

Mental Pathways

The neural routes in the brain through which information flows and cognitive processes occur, shaping thoughts, emotions, and behaviors.

Priming

A psychological phenomenon where an initial stimulus influences a person's response to a subsequent, related stimulus without conscious guidance.