Assume a Simplified Banking System in Which All Banks Are

question 84

Multiple Choice

Assume a simplified banking system in which all banks are subject to a uniform reserve requirement of 20 percent and checkable deposits are the only from of money. A bank that received a new checkable deposit of $10,000 would be able to extend new loans up to a maximum of:

• A) $2,000.
• B) $8,000.
• C) $9,000.
• D) $10,000.

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Definitions:

Multisyllabic Words

Words composed of more than one syllable, contributing to the complexity of language and its comprehension.

Whole Object

The perception of an object as a single entity, despite the presence of multiple components or features.

Actual Talking

The act of engaging in speech or verbal communication to convey messages, ideas, or feelings.

Selective Looking Experiment

An experimental method to study focused attention, where participants are asked to pay attention to certain stimuli while ignoring others.