Paul Is Wide Awake and Studying for an Upcoming Exam

question 29

Multiple Choice

Paul is wide awake and studying for an upcoming exam.While he is studying,his brain activity is being recorded using an electroencephalograph (EEG) .Which type of waves is likely to dominate Paul's EEG readings

• A) high-voltage, high-frequency brain waves 
• B) low-voltage, high-frequency brain waves 
• C) high-voltage, low-frequency brain waves 
• D) low-voltage, low-frequency brain waves

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Definitions:

Money Multiplier

A concept that describes the amount of money that banks can generate with each dollar of reserves.

Percent

A mathematical term describing one hundredth of a particular quantity; a unit of proportion or rate expressed as a fraction of 100.

Reserves

Funds or assets that banks must hold either in their own vaults or on deposit with a central bank, to meet expected withdrawal demands or regulatory requirements.

Reserve Requirement

A regulation that sets the minimum fraction of customer deposits and notes that each bank must hold as reserves, rather than loaning out or investing.