Suppose That the Cash Drain in the Banking System Increases

question 52

Multiple Choice

Suppose that the cash drain in the banking system increases during holiday periods.As a result,

• A)the capacity of the banking system to create deposit money is dampened during holiday periods.
• B)the capacity of the banking system to create deposit money is increased during holiday periods.
• C)commercial banks decrease their target reserve ratios.
• D)changes in reserves will result in no change in deposits during holiday periods.
• E)the money supply will automatically increase.

Comprehend the concept of duress in the context of contracts.

Distinguish between different types of misrepresentations (fraudulent, negligent, innocent) and their implications.

Understand the role of scienter in misrepresentation cases.

Know the legal remedies available when a contract is entered into under mistake, violence, intimidation, undue influence, or fraud.

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Definitions:

Vicarious Reinforcement

A process in behavior learning theory where individuals modify their behavior based on observing consequences applied to others, rather than experiencing them directly.

Collective Unconscious

A concept in analytical psychology proposing that societies share inherent structures of the unconscious mind comprising universal themes and symbols.

Libido

In psychoanalytic theory, this term refers to the energy associated with the sexual drive that forms part of the life instinct.

Social Interest

A concept in psychology that describes the individual's attitude towards society and the welfare of others.