You Withdraw $2,000 from Your Account

question 340

Multiple Choice

You withdraw $2,000 from your account. Your bank has a desired reserve ratio of 20 percent. This transaction, by itself, will directly reduce

• A) the quantity of money by $2,000.
• B) deposits by $2,000.
• C) the quantity of money by $1,600.
• D) deposits by $1,600.

---

Definitions:

Perceptual Reasoning

The ability to use sensory information (such as visual and spatial) to identify patterns, solve problems, and understand the relationship between objects.

Wechsler Intelligence Tests

A set of standardized tests used to measure intelligence and cognitive ability in adults and children.

Intelligence Quotient

A measure of a person's intellectual abilities in relation to their age group, typically derived from standardized tests designed to assess human intelligence.

Population

The entire group of people or animals in which the researcher is interested.