In the Simple Deposit Expansion Model,if the Fed Purchases $100

question 167

Multiple Choice

In the simple deposit expansion model,if the Fed purchases $100 worth of bonds from a bank that previously had no excess reserves,the bank can now increase its loans by

• A)$10.
• B)$100.
• C)$100 times the reciprocal of the required reserve ratio.
• D)$100 times the required reserve ratio.

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Definitions:

Imitate

To copy or mimic the actions, appearance, or speech of someone else, typically as a means of learning or showing affiliation.

Latent Learning

Learning that occurs without immediate reinforcement but is demonstrated later when a suitable motivation is present.

Cognitive Processes

The mental activities involved in acquiring, storing, and manipulating information, including perception, memory, and problem-solving.

Vicarious Reinforcement

Learning through observing the consequences of another person's behavior being rewarded or punished.