If a Banking Transaction Created New Excess Reserves in the Banking

question 149

Multiple Choice

If a banking transaction created new excess reserves in the banking system,what would the impact be on the amount of loans made by banks and the money supply?

• A)an increase in the amount of loans made by banks and a decrease in the supply of money
• B)an increase in the amount of loans made by banks and an increase in the supply of money
• C)a decrease in the amount of loans made by banks and a decrease in the supply of money
• D)a decrease in the amount of loans made by banks and an increase in the supply of money

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Definitions:

Calcium Channels

Calcium channels are protein-based channels present in the cell membrane that facilitate the entry of calcium ions into cells, playing crucial roles in various physiological processes.

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Spontaneous or evoked sound waves produced within the ear by the cochlea that escape from the ear.

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Very young babies, typically under a month old, who are in the earliest stage of postnatal life.

Inner Ear

The innermost part of the ear, containing the cochlea, vestibule, and semicircular canals, responsible for hearing and balance.