When Currency Is Deposited into a Demand Deposit Account

question 72

Multiple Choice

When currency is deposited into a demand deposit account

• A) it is a sign that a run on the bank has begun.
• B) the money supply will fall.
• C) the Federal Reserve System must borrow.
• D) bank reserves increase.
• E) it is no longer serving as a standard of value.

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Definitions:

Csikszentmihalyi

Mihaly Csikszentmihalyi is a psychologist known for his research on flow, a state of intense focus and immersion in activities.

Engaged

Describes being fully absorbed, interested, and involved in an activity or situation.

Full Concentration

The state of being completely focused or absorbed in a task or activity, with all cognitive resources directed towards it.

Arbitration

A method of dispute resolution where a neutral third party, known as an arbitrator, makes a binding decision to resolve a disagreement between parties.