If There Is No One Who Is Interested in Borrowing

question 92

Multiple Choice

If there is no one who is interested in borrowing from a bank:

• A) the bank's excess reserves will be zero.
• B) there will be no process of money creation.
• C) the required reserve ratio must be equal to zero.
• D) the required reserve ratio must be equal to 100 percent.

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Definitions:

Absolute Threshold

The minimum stimulus intensity that an organism can detect at least 50% of the time, a concept used in sensory psychology.

Brightness

The perception of how luminous an object appears, influenced by the object's illumination and the contrast with its surroundings.

Perceptual Set

A mental predisposition to perceive one thing and not another, influenced by expectations, emotions, and experiences.

Gestalt Psychologist

A psychologist who studies how people perceive and experience objects as whole patterns or configurations, not just as simple sums of their parts.