Suppose the Required Reserve Ratio Is 10 Percent, and Banks

question 33

Multiple Choice

Suppose the required reserve ratio is 10 percent, and banks hold no excess reserves. If an individual withdraws $20 million from Bank Y, then the amount of reserves held by Bank Y will

• A)decrease by $20 million.
• B)decrease by $2 million.
• C)increase by $2 million.
• D)increase by $20 million.
• E)not change.

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Definitions:

Physiological Needs

Basic physical requirements including air, water, food, shelter, and sleep, necessary for human survival.

Breathing

The process of inhaling and exhaling air through the respiratory system, essential for providing oxygen to the body's cells and removing carbon dioxide.

Love And Belonging

A human emotional need to be an accepted member of a group, whether it be family, friends, or a larger social connection.

Humanistic Perspective

A psychological viewpoint that emphasizes individual potential for growth and the importance of self-actualization and psychological well-being.