In a Deposits-Only Monetary System with a 5% Required Reserve

question 113

Multiple Choice

In a deposits-only monetary system with a 5% required reserve ratio, a bank deposit of $1,000 could increase the total amount of bank deposits by up to:

• A) $5,000.
• B) $10,000.
• C) $20,000.
• D) $50,000.

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Definitions:

Behavioral-focused

Emphasizes changing behaviors through various psychological strategies and interventions, focusing on observable actions.

Existential

Relating to or based on human existence, especially its inherent meaning, challenges, and the individual's freedom to make choices.

Cognition-focused

Pertaining to approaches or interventions that concentrate on improving mental processes such as thinking, memory, and problem-solving.

Classical Conditioning

A training technique in which a reaction, initially caused by a subsequent stimulus, becomes associated with an earlier stimulus following repeated pairings of the stimuli.