Use the Following to Answer Questions

question 124

Multiple Choice

Use the following to answer questions .
Exhibit: Fed Buys Bonds
Scenario 1: Fed Buys Bonds from Sheila Jones
Consider a banking system in which the reserve requirement is 10%, banks try not to hold excess reserves, consumers and firms hold money only in the form of checking account balances, and all loan proceeds are spent. Suppose initially all banks in the system are loaned up. Now, suppose that the Fed buys a $100,000 bond from Sheila Jones, who banks at the Perez Bank, and that she deposits her check in her checking account at Perez Bank.
-(Exhibit: Fed Buys Bonds) Immediately following Sheila's $100,000 deposit into her checking account, Perez Bank

• A) has no excess reserves.
• B) has $10,000 in excess reserves.
• C) has $90,000 in excess reserves.
• D) has $100,000 in excess reserves.

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Definitions:

Personality Scores

Quantitative measures derived from assessments designed to describe individual differences in personality traits and characteristics.

Variables

Any characteristic, number, or quantity that can be measured or quantified that may vary among subjects being observed.

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An individual's subjective evaluation of their own worth, encompassing beliefs about oneself, including body image, emotions, and behaviors.

Correlational Research

A research method used to determine the relationship between two variables without the inference of causation.