Scenario 16-2 Imagine That Kristy Deposits $10,000 of Currency into Her Checking

question 87

Multiple Choice

Scenario 16-2
Imagine that Kristy deposits $10,000 of currency into her checking account deposit at Bank A and that the required reserve ratio is 20%.
-Refer to Scenario 16-2.As a result of Kristy's deposit,checking account deposits in the banking system as a whole (including the original deposit) could eventually increase up to a maximum of

• A) $8,000.
• B) $10,000.
• C) $50,000.
• D) $100,000.

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced when holding contradictory beliefs, values, or attitudes, often leading to an alteration in one of them to reduce the dissonance.

Induce

To bring about or give rise to something, often through a specific action or procedure.

Opposed

To be in disagreement or in conflict with something or someone.

Attitudes

An individual's learned predispositions to respond in a consistently favorable or unfavorable manner with respect to a given object.