You Receive a $1,000 Check from Your Parents for Your

question 27

Multiple Choice

You receive a $1,000 check from your parents for your birthday,and you deposit this in a bank that faces a 10% reserve ratio.What is the consequence if the bank then deposits your check at the Federal Reserve?

• A) Excess reserves increase by $1,000 and required reserves increase by $100.
• B) Excess reserves increase by $900 and required reserves increase by $100.
• C) Excess reserves increase by $1,000.
• D) Required reserves increase by $1,000.
• E) Reserves are not affected.

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Definitions:

Ethical Relativism

The philosophical view that moral standards, values, and judgments are not universal but are culturally and individually determined.

Open-Mindedness

The willingness to consider new ideas, arguments, and information without bias or predetermined conclusions.

Moral Behavior

Actions that conform to accepted standards of good or right conduct, often based on societal or personal ethical principles.

Good Person Philosophy

A belief system that emphasizes the inherent goodness of individuals and the importance of moral and ethical behavior in personal development.