You Withdraw $100 from Your Checking Account

question 49

Multiple Choice

You withdraw $100 from your checking account. How does this affect the money supply and the reserves of your bank?

• A) The money supply increases, and the reserves of your bank decline.
• B) Both money supply and the reserves of your bank increase.
• C) There is no change in the money supply, and the reserves of your bank decline.
• D) The money supply decreases, and the reserves of your bank increase.

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Definitions:

Idiographic Laws

Principles or laws that explain the unique, individual characteristics that distinguish one person from another, as opposed to nomothetic laws which seek universal principles applicable to all.

Idiographic Approach

The idiographic approach is a method in psychological study focusing on the unique characteristics and experiences of an individual to understand their behavior.

Nomothetic

An approach in psychology that seeks to produce general statements and universal laws of behavior through the study of large groups.

Reliability

The degree to which an assessment tool produces stable and consistent results over repeated use.