In the Simple Deposit Expansion Model,if the Fed Extends a $100

question 90

Multiple Choice

In the simple deposit expansion model,if the Fed extends a $100 discount loan to a bank that previously had no excess reserves,the bank can now increase its loans by

• A)$10.
• B)$100.
• C)$100 times the reciprocal of the required reserve ratio.
• D)$100 times the required reserve ratio.

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Definitions:

Beta Wave Activity

refers to the brain wave patterns associated with active, alert, and waking states of consciousness, characterized by a higher frequency of neural oscillations.

Alpha Wave Activity

Brainwaves detected via EEG, associated with a relaxed yet alert state of consciousness.

Inverted-U Function

A theory suggesting that there is an optimal level of arousal for performance, with both too little and too much arousal leading to poorer outcomes.

Arrousal

Arousal (correct spelling) is a physiological and psychological state of being awoken or alert, characterized by heightened physical activity and sensory alertness.