If Banks Choose to Hold Excess Reserves

question 76

Multiple Choice

If banks choose to hold excess reserves

• A)Lending decreases, and the money supply decreases.
• B)Lending increases, and the money supply increases.
• C)Lending decreases, and the money supply increases.
• D)None of these.

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Definitions:

Declarative Memories

Recollections accessible to our conscious mind, comprising knowledge and events.

Semantic Memory

Semantic memory refers to a portion of long-term memory that processes ideas and concepts that are not drawn from personal experience, such as facts, meanings of words, and general knowledge of the world.

Declarative Memories

Recollections that are accessible to conscious awareness, including information and occurrences.

Nondeclarative Memories

A category of long-term memory that includes skills, tasks, and actions one can perform without consciously thinking about them, such as riding a bicycle.