What Is the Immediate Effect When Bank a Lends $1

question 111

Multiple Choice

What is the immediate effect when Bank A lends $1, 000 to a local business?

• A)The money supply increases by $1, 000
• B)The money supply decreases by $1, 000
• C)Bank A's liability increases by $1, 000
• D)Bank A's excess reserves increase by $1, 000
• E)Bank A's demand deposits decrease by $1, 000

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Definitions:

Hereditarianism

The theory that genetic inheritance is a primary determinant of human traits including intelligence, personality, and behavior.

Free Will

Free will refers to the belief that humans have the power to make choices that aren't predicated solely by biology or external forces.

Heredity

The genetic transmission of traits from parents to offspring.

Predict

To declare or indicate in advance; especially, to foretell based on observation, experience, or scientific reasoning.