Assume That U

question 328

Multiple Choice

Assume that U.S.National Bank has no excess reserves and that the reserve ratio is 20 percent.If U.S.National borrows $5 million from a Federal Reserve Bank through a repo transaction, it can expand its loans by a maximum of

• A)$5 million.
• B)$1 million.
• C)$25 million.

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Definitions:

Figure-Ground Effect

A visual perception principle that involves distinguishing a figure (object) from its background based on differences such as color, luminance, shape, or motion.

Figure-Ground Relationships

A principle in perception and visual communication that refers to the way humans visually separate objects (figures) from their surrounding background (ground) to understand what they see.

Poggendorf Illusion

The Poggendorf Illusion is a visual illusion where a diagonal line intersecting two parallel lines appears misaligned due to the interruption by an obscuring pattern, illustrating how perception can be distorted by context.

Ponzo Illusion

A visual illusion where two horizontal lines of equal length appear to be of different lengths because of converging parallel lines in the background.