The Greater the Currency Drain Ratio

question 17

Multiple Choice

The greater the currency drain ratio,

• A) the smaller is the quantity of deposits and money that the banking system can create.
• B) the larger the ratio of excess reserves to currency.
• C) the smaller is the quantity of currency the public hold outside the bank.
• D) the larger is the quantity of deposits and money that the banking system can create.
• E) None of the above.

---

Definitions:

Cognitive Social-Learning Theories

Theories that emphasize the role of cognitive processes in learning from the social environment, including the effects of beliefs, self-perceptions, and expectations on behavior.

Personality

The mix of features or qualities that establish an individual's distinct identity.

Psychosexual Stages

Psychosexual stages are a series of developmental stages proposed by Freud, in which an individual's personality development is thought to be influenced by the focus of pleasure and sexual impulses.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.