If People Choose to Hold Some of a Newly Received

question 75

Multiple Choice

If people choose to hold some of a newly received loan as cash instead of keeping it in a checking account,_____.

• A)the money supply will not increase as much as it would had borrowers deposited all of the money
• B)the money supply will remain unchanged
• C)the money supply will decrease as much as it would had borrowers deposited all the money
• D)the banking system will collapse
• E)the economy will experience a recession

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Definitions:

Salivary Glands

Exocrine glands located around the mouth that produce saliva, which begins the process of digestion and helps maintain oral health.

Basement Membrane

A thin, fibrous extracellular matrix that separates epithelial and endothelial cells from underlying connective tissue.

Connective

Referring to connective tissue in the body, which supports, binds together, and protects organs, including bones, tendons, and fat.

Nervous

The nervous system is the part of an organism that coordinates its actions and sensory information by transmitting signals to and from different parts of its body.