When New Checkable Deposits Are Created Through Loans

question 27

Multiple Choice

When new checkable deposits are created through loans,

• A) the money supply contracts.
• B) excess reserves are destroyed.
• C) the money supply remains the same.
• D) the money supply expands.
• E) the required reserve ratio declines

---

Definitions:

Existential Theory

A psychological philosophy or therapy approach that emphasizes individual freedom, choice, and responsibility, focusing on the meaning of life and the search for value.

Existential Theory

A psychological theory that emphasizes individual existence, freedom, and choice as core human values, focusing on the meaning of life and the search for personal identity and authenticity.

Adolescents

The transitional stage of development from childhood to adulthood, characterized by significant physical, psychological, and social changes.

Existential Theory

A psychological philosophy that focuses on exploring the human condition and concerns such as mortality, meaning, freedom, and the essence of being through a person-centered therapeutic process.