Which of the Following Is Correct

question 257

Multiple Choice

Which of the following is correct?

• A)A bank's deposits at the Federal Reserves counts as part of the bank's reserves. The Federal Reserve pays interest on these deposits.
• B)A bank's deposits at the Federal Reserves counts as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits.
• C)A bank's deposits at the Federal Reserves does not count as part of the bank's reserves. The Federal Reserve pays interest on these deposits.
• D)A bank's deposits at the Federal Reserves does not counts as part of the bank's reserves. The Federal Reserve does not pay interest on these deposits.

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Definitions:

7 ± 2

A theory suggesting that the average person can hold about 7 (plus or minus 2) items in their working memory.

Miller

Refers to George A. Miller, a cognitive psychologist best known for his theory regarding the limit of short-term memory capacity, often summarized as "seven, plus or minus two" pieces of information.

Memory Capacity

Memory capacity refers to the amount of information that can be stored in the memory system at any given time.

Sensory Register

The component of memory that holds incoming sensory information for a very short period of time, almost like a snapshot.