The Banking System Is Loaned Up and Reserves Fall by $100

question 66

Multiple Choice

The banking system is loaned up and reserves fall by $100. Given a required reserve ratio of 10 percent, what will happen to deposits?

• A)increase by $1,000
• B)decrease by $10,000
• C)decrease by $1,000
• D)increase by $10,000

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Definitions:

Hypnosis

A mental state of heightened focus and suggestibility where the individual can experience altered consciousness.

Application

The act of putting something into operation or the process of applying something for a particular use or purpose.

Sleep Deprivation

A condition resulting from insufficient sleep, affecting physical and mental performance and health.

Physiological Effects

The physical changes and responses in the body resulting from various factors, including stress, drug use, and disease.