All Else the Same, When the Bank Calls in a $100

question 128

Multiple Choice

All else the same, when the Bank calls in a $100 loan previously extended to the First National Bank, reserves in the banking system ________.

• A) increase by $100
• B) increase by more than $100
• C) decrease by $100
• D) decrease by more than $100

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Definitions:

Eyes

Organ of vision in humans and other organisms that allows the perception of light, shapes, and colors through a complex process of light detection and signal transmission to the brain.

Compound Eyes

Eyes that consist of thousands of small, individual photoreceptor units, common in insects and crustaceans, providing a wide angle of vision.

Insect

A small arthropod animal that has six legs and, generally, one or two pairs of wings.