When the Fed Supplies the Banking System with an Extra

question 32

Multiple Choice

When the Fed supplies the banking system with an extra dollar of reserves,deposits increase by more than one dollar-a process called

• A)extra deposit creation.
• B)multiple deposit creation.
• C)expansionary deposit creation.
• D)stimulative deposit creation.

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Definitions:

Overtones

Harmonic frequencies which are higher than the fundamental frequency of a sound, contributing to its timbre.

Noise

Unwanted sound or signal that interferes with the communication, detection, or measurement of a signal.

Timbre

The characteristic of a sound that sets it apart from other sounds with identical pitch and loudness.

Perception

The process by which individuals interpret and organize sensation to produce a meaningful experience of the world.