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If the Required Reserve Ratio Is 10 Percent and a Bank

question 42

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If the required reserve ratio is 10 percent and a bank receives a deposit of $1,000, how much may the bank loan out?


Definitions:

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An agreement where the obligations and outcomes depend on certain conditions or events happening.

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A behavioral modification method that involves rewarding desired behaviors with tokens that can be exchanged for privileges, treats, or other reinforcers.

Token Economy

A behavioral modification technique based on systematic reinforcement, where tokens are given as a reward for desired behaviors, which can later be exchanged for privileges or treats.

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