If the Reserve Requirement Is 20 Percent and a New

question 28

Multiple Choice

If the reserve requirement is 20 percent and a new deposit of $10,000 in cash is made by a customer to their checking account, by how much are excess reserves increased?

• A)$10,000
• B)$8,000
• C)$4,000
• D)$2,000

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Definitions:

Representativeness Heuristic

A cognitive shortcut where the likelihood of an object belonging to a category is judged based on how similar it is to a typical case from that category.

Operational Definition

A detailed description of the procedures and measurements that researchers use to quantify behaviors or qualities for study.

Intelligence

Intelligence is the capacity for learning, understanding, and applying information, problem-solving, and adapting to new situations.

Cerebral Cortex

The outer layer of neural tissue of the cerebrum of the brain, playing a key role in memory, attention, perception, awareness, thought, language, and consciousness.