To Determine the Total Change in Deposits as a Result

question 168

Multiple Choice

To determine the total change in deposits as a result of an injection of reserves,we must

• A) sum the number of loans a bank has made
• B) multiply the injection of reserves by 10
• C) multiply the number of loans by the expenditure multiplier
• D) sum the reserves of each bank
• E) multiply the injection of reserves by the demand deposit multiplier

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Definitions:

Sensory Register

The initial processing system that holds incoming sensory information for a very short period of time, allowing it to be perceived.

Subsystems

Components of a larger system that work together to achieve a common goal, each performing a specific function within the overall system.

Declarative Memories

Memories that can be consciously recalled such as facts and events.

Recognition

The cognitive process of identifying a familiar object, concept, or piece of information from previous encounters or knowledge.