Table 29-5 -Refer to Figure 29-5.If All Banks Hold Only the Required

question 239

Multiple Choice

Table 29-5

-Refer to Figure 29-5.If all banks hold only the required 4 percent of deposits as reserves,then what is the money multiplier?

• A)4
• B)16
• C)20
• D)25

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Definitions:

Depolarization

The reduction in the electrical charge difference across a cell's plasma membrane, leading to the initiation of an action potential.

Resting Potential

The electrical charge difference across the cell membrane while a neuron is at rest, typically around -70mV, enabling the potential for action potentials.

Action Potential

A rapid increase and subsequent decrease in voltage across a cellular membrane, allowing neurons and muscle cells to communicate and react to stimuli.

Convergence

The evolutionary process where organisms from different evolutionary backgrounds develop similar traits or features in response to similar environmental challenges or functional needs.