If the Reserve Requirement Is 10 Percent, Which of the Following

question 66

Multiple Choice

If the reserve requirement is 10 percent, which of the following pairs of changes would both allow a bank to lend out an additional $10,000?

• A)The Fed buys a $10,000 bond from the bank or someone deposits $10,000 in the bank.
• B)The Fed buys a $10,000 bond from the bank or the Fed lends the bank $10,000.
• C)The Fed sells a $10,000 bond to the bank or someone deposits $10,000 in the bank.
• D)The Fed sells a $10,000 bond to the bank or the Fed lends the bank $10,000.

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Definitions:

Acoustically

Pertaining to sound, the science of sound, or the properties of sound transmission.

Recognize Stimulus

The process by which an organism identifies and responds to sensory information that signifies important or relevant events.

Visuospatial Sketchpad

A component of working memory that allows for the manipulation and storage of visual and spatial information.

Rehearsal Loop

A cognitive process in which information is repeated mentally to keep it in short-term memory longer.