Use the Following Example to Answer the Questions That Follow

question 45

Multiple Choice

Use the following example to answer the questions that follow.
Imagine that you deposit $25,000 in currency (which you had been storing in your closet) five into your checking account at the bank. Assume that this institution has a required reserve ratio of 25%.
-As a result of this deposit,what is the maximum amount in loans that all the banks in the banking system can make?

• A) $0
• B) $18,750
• C) $25,000
• D) $31,250
• E) $100,000

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Definitions:

Retaliation

The act of returning an injury or wrong received from another, often seen as a form of retribution or revenge.

Aggression Bias

The tendency to perceive actions or intentions as more aggressive than they may actually be, often influenced by stereotypes or prior experiences.

Unusually Strong Need

An atypical, intense requirement or desire for something, often leading to specific behaviors or actions to fulfill that need.

Cooperativeness

The willingness to work together with others towards a common goal or benefit, often involving compromises and teamwork.