If a Number of People Suddenly Deposit into Their Checking

question 99

Multiple Choice

If a number of people suddenly deposit into their checking accounts a great deal of cash previously kept in their pockets or at home, other things constant, their actions will

• A) create excess reserves and place banks in a position to extend additional loans, which will reduce the money supply.
• B) create excess reserves and place banks in a position to extend additional loans, which will expand the money supply.
• C) lead to higher interest rates.
• D) force the Fed to reduce its discount rate.

---

Definitions:

Affect And Mood

Terms relating to feelings and emotions, with affect being the immediate expression of emotion and mood being a sustained emotional state.

Personal Strength

Individual characteristics or traits that contribute to one's ability to succeed or excel in various aspects of life.

Self-Efficacy

The belief in one's own ability to successfully accomplish tasks and manage situations.

Anger Issues

Difficulties in managing feelings of anger, which can affect a person's mental health and interpersonal relationships.