Suppose You Found a $100 Bill That Was Lost for Several

question 83

Multiple Choice

Suppose you found a $100 bill that was lost for several years under your grandmother's mattress and you decided to deposit this money in a commercial bank. If the target reserve ratio were 20 percent and all excess reserves were lent out, your new deposit of $100 would lead to an eventual expansion of the money supply of

• A)$120.
• B)$200.
• C)$500.
• D)$1200.
• E)$2000.

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Definitions:

Anxiety

Anxiety is a psychological state characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure.

Procedural Self

An aspect of self-concept based on patterns of behavior that are integrated into a coherent self-identity through repeated actions and experiences.

Conscious

The state of being awake and aware of one's surroundings, thoughts, and experiences.

Unconscious

A part of the mind that contains thoughts, memories, and desires that are not within current conscious awareness but can influence behaviors and emotions.