The Following Question Are Based on the Following Information: the Country

question 70

Multiple Choice

The following question are based on the following information: The country has a fractional-reserve banking system, required reserves are 12.5 percent of demand deposits, each bank initially has reserves exactly equal to the required amount, each wants to maintain this equality, and no person withdraws cash from the banking system.
-Suppose $10,000 in newly printed currency is deposited in a checking account in bank A.Bank A now has

• A) excess reserves of $10,000.
• B) required reserves up by $10,000.
• C) net worth up by $10,000.
• D) demand deposits up by $10,000.
• E) added $10,000 to the money supply.

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Definitions:

Psychiatric Disorders

Mental health conditions characterized by changes in emotion, thought, or behavior, associated with distress or impaired functioning.

Egas Moniz

A Portuguese neurologist best known for pioneering the development of cerebral angiography and the controversial prefrontal leucotomy.

Anxiety Disorder

A disorder that includes a number of conditions in which unhelpful anxiety has a negative effect on daily life.

Phobias

Intense, irrational fears of specific objects or situations, which can trigger severe anxiety and avoidance behavior disproportionate to the actual threat posed.