Assume the Reserve Requirement Is 10% and All Banks Are

question 99

Multiple Choice

Assume the reserve requirement is 10% and all banks are fully loaned-up. If a new deposit of $10,000 is made into Bank X, that bank can make new loans of

• A) $1,000.
• B) $9,000.
• C) $10,000.
• D) $11,000.

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Definitions:

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, promoting the association between behaviors and their consequences.

Environmental Circumstances

The conditions or factors that surround and influence the living and non-living elements of an ecosystem or environment.

Instinctive Behavior System

Behaviors that are innate, occurring naturally and automatically in response to specific stimuli.

Constraints

Limitations or restrictions that define the conditions or rules within which operations or processes occur.