Table 10-3 The Following Information Pertains to the Bank of Kamloops

question 72

Multiple Choice

Table 10-3
The following information pertains to the Bank of Kamloops.
-Refer to the Table 10-3.Assume that all other banks hold only the required 5 percent of deposits as reserves and people hold only deposits and no currency.If the Bank of Kamloops decides to hold exactly 5 percent in reserves,by how much would the economy's money supply increase?

• A) $500
• B) $1200
• C) $1500
• D) $2000

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Definitions:

Explicit Memories

Memories that can be consciously recalled, such as facts and personal experiences.

Hippocampus

A structure in the brain associated with the formation of new memories and is involved in learning and emotions.

Procedural Memories

The type of long-term memory responsible for knowing how to do things, also known as motor skills, involving the learning of tasks.

Infantile Amnesia

The inability of adults to recall personal memories from early childhood, typically before the age of three or four.