When a Banker Accepts a Deposit of $1,000 in Cash

question 55

Multiple Choice

When a banker accepts a deposit of $1,000 in cash and puts $200 aside as required reserves and then makes a loan of $800 to a new borrower, this set of transactions

• A) decreases the money supply by $1,000.
• B) decreases the money supply by $200.
• C) does not change the money supply.
• D) increases the money supply by $200.
• E) increases the money supply by $800.

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Definitions:

Cultural Competence

The ability of individuals and organizations to effectively interact, work, or engage with people from different cultural backgrounds.

Culturally Diverse

Referring to the presence of multiple cultural expressions, traditions, and expressions within a given setting or society.

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A skilled individual who translates spoken or signed communication between speakers of different languages in various settings.

Severely Anxious

Describes a state of intense anxiety or worry that significantly impairs one's ability to function in daily life, often requiring professional intervention.