In a 100-Percent-Reserve Banking System, If a Customer Deposits $100

question 54

Multiple Choice

In a 100-percent-reserve banking system, if a customer deposits $100 of currency into a bank, then the money supply:

• A) increases by $100.
• B) decreases by $100.
• C) increases by more than $100.
• D) remains the same.

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Definitions:

Dowry

A cultural practice involving the transfer of wealth, usually from the bride's family to the groom's family, as part of marriage agreements in certain societies.

First-cousin Marriage

A marriage between individuals who have one set of grandparents in common, legally and culturally accepted in some societies but prohibited in others.

Genetic Deficiency

A lack or shortage in the genetic makeup that can lead to diseases or health problems.