When a Banker Accepts a Deposit of $1,000 in Cash

question 55

Multiple Choice

When a banker accepts a deposit of $1,000 in cash and puts $200 aside as required reserves and then makes a loan of $800 to a new borrower, this set of transactions

• A) decreases the money supply by $1,000.
• B) decreases the money supply by $200.
• C) does not change the money supply.
• D) increases the money supply by $200.
• E) increases the money supply by $800.

Apply knowledge of psychological theories to interpret individual behaviors within relationships.

Assess the balance of anxiety and avoidance in determining relationship attachment styles.

Understand the classification of different cash flows in the statement of cash flows.

Comprehend how cash flows from operating, investing, and financing activities are presented and analyzed.

---

Definitions:

Elasticity of Demand

This refers to the measure of how much the quantity demanded of a good or service changes in response to a change in its price.

Marginal Cost

The heightened cost incurred by the production of an additional unit of a good or service.

Monopoly Power

Monopoly power refers to the ability of a single provider to control the market for a good or service, enabling them to set prices without concern for competition.

Short-run

A period in which at least one input is fixed, limiting the ability of the firm to adjust its production levels.