Use the Following Example to Answer the Following Questions

question 59

Multiple Choice

Use the following example to answer the following questions:
Imagine that Stella deposits $25,000 in currency (which she had been storing in her closet) into her checking account at the bank.Assume that this institution has a required reserve ratio of 25 percent.
-As a result of this deposit,by how much will the bank's reserves increase?

• A) $0
• B) $6,250
• C) $25,000
• D) $31,250
• E) $100,000

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Definitions:

James-Lange Theory

A theory of emotion that suggests emotions occur as a result of physiological reactions to events.

Facial Expression

The use of facial muscles to convey emotions or reactions non-verbally.

Two-factor Theory

A concept in psychology suggesting that emotional experiences arise from a combination of physiological arousal and a cognitive label applied to the source of the arousal.

Cognitive Label

A cognitive label refers to the identification and categorization of an experience or emotion based on cognitive processing.