The US Banking System Has the Ability to Alter the Size

question 84

Multiple Choice

The U.S. banking system has the ability to alter the size of the money supply because of the use of

• A) a 100% reserve system.
• B) a fractional reserve system.
• C) the Federal Reserve System's excess reserves.
• D) Federal Reserve notes issued by the U.S. Treasury.

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Definitions:

Conditioned Stimulus

An originally neutral stimulus that, after association with an unconditioned stimulus, comes to trigger a conditioned response in classical conditioning.

Pavlov's Experiment

A foundational study in behavioral psychology that demonstrated classical conditioning through the use of dogs, a bell, and food.

Unlearned Response

A natural, instinctive reaction that does not require prior learning or experience to occur, such as a reflex.

Learned Response

Behaviors or skills that are acquired or modified through experience or conditioning.