If Demand Deposits Increase,the Result Is That

question 124

Multiple Choice

If demand deposits increase,the result is that

• A) required reserves must increase
• B) the reserve ratio must increase
• C) all banks are "loaned up"
• D) the number of loans must decrease
• E) all banks are suffering a loss

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Definitions:

Team Assignments

Tasks or projects assigned to a group of individuals for collaborative work, aiming to pool skills, knowledge, and efforts.

Contact Hypothesis

A theory suggesting that under certain conditions, interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.

Confirmation Bias

A tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.

Prejudiced

Holding preconceived opinions or judgments about someone or something without proper knowledge, often based on stereotypes or bias.