If Reserves Held at the Fed by the Private Banks

question 32

Multiple Choice

If reserves held at the Fed by the private banks decrease,________.

• A) banks will make more loans
• B) bank deposits will decrease
• C) demand for labor will increase
• D) the nominal interest rate will decrease

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Definitions:

Secondary Drive

A learned drive that is not directly related to biological needs but rather emerges through the association with primary drives or needs.

Acquired Drives

Psychological needs or desires that are developed through experience or learned associations rather than innate.

Secondary

Relating to or of second rank or importance; not primary.

Maslow's Theory

A hierarchy of human needs conceptualized by Abraham Maslow, suggesting that people are motivated to fulfill basic needs before moving on to other, more advanced needs.