A Black Hole Is a Process That Has ____

question 80

Multiple Choice

A black hole is a process that has ____.

• A)no input
• B)at least one output and one input, but the output obviously is insufficient to generate the input shown
• C)no output
• D)at least one input and one output, but the input obviously is insufficient to generate the output shown

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Definitions:

Checkable Deposits

Bank accounts from which individuals can deposit and withdraw money using checks, ATM transactions, and electronic payments.

Reserve Requirement

The minimum fraction of customer deposits that each bank must hold as reserves, rather than lending out, as mandated by the central bank.

Simple Money Multiplier

A formula that determines the maximum amount of money that banks can create with a given level of reserves.

Excess Reserves

Banks' reserves that exceed the minimum required by the central bank, available for lending or investment.