Suppose University Bank Has Zero Excess Reserves

question 141

Multiple Choice

Suppose University Bank has zero excess reserves.If the required reserve ratio decreases,the

• A)Bank's assets will increase.
• B)Bank will not have enough required reserves.
• C)Bank will be able to make more loans.
• D)Money multiplier will decrease.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any prior learning.

Partial Conditioner

An agent or factor that has a conditional effect, contributing to an outcome only in certain contexts or situations.

Unconditioned Responses

Automatic, natural reactions to stimuli that occur without prior learning or conditioning, such as reflex actions.