Which of These Is NOT a Leakage in Money Creation

question 42

Multiple Choice

Which of these is NOT a leakage in money creation?

• A) keeping cash under the mattress
• B) foreigners holding U.S. dollars to diversify risk
• C) banks holding more reserves than required
• D) depositing a large jar of coins at the bank

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Definitions:

Sensorimotor

The first stage of Piaget’s theory of cognitive development, from birth to roughly 2 years, where infants understand the world through their actions and sensory experiences.

Secondary Circular Reaction

A stage in Piaget's theory of cognitive development where infants repeat actions that are pleasurable or produce interesting results, typically occurring from 4 to 8 months of age.

Primary Circular Reaction

An early developmental stage where infants repeat an action that they accidentally discovered, focusing on their own body.

Tertiary Circular Reaction

A stage in Piaget's theory of cognitive development during which toddlers experiment with new behaviors to see the outcomes, typically observed around 12 to 18 months of age.