If Actual Reserves in the Banking System Are $40,000, Excess

question 48

Multiple Choice

If actual reserves in the banking system are $40,000, excess reserves are $10,000, and checkable deposits are $240,000, then the legal reserve requirement is

• A) 10 percent.
• B) 12.5 percent.
• C) 20 percent.
• D) 5 percent.

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Definitions:

Pleasure Principle

In psychoanalytic theory, it is the driving force of the id that seeks immediate gratification of all desires, wants, and needs.

Guilt/Pride Principle

Refers to the internal motivators of guilt and pride that can encourage conformity to social norms and personal standards.

Ego Ideal

The part of the personality that consists of the standards of perfection and aspirations a person aims to achieve.

Mental Representations

Internal cognitive symbols that represent external reality, allowing individuals to think about objects, events, and conditions not immediately present.