If the Reserve Ratio Is 5 Percent, Then $2,500 of Additional

question 336

Multiple Choice

If the reserve ratio is 5 percent, then $2,500 of additional reserves can create up to

• A)$62,500 of new money.
• B)$50,000 of new money.
• C)$45,600 of new money.
• D)$37,500 of new money.

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Definitions:

Associative Learning

The learning process through which an individual forms connections between stimuli or behaviors and certain events or conditions.

Operant Learning

A learning approach that involves the use of consequences and reinforcements for actions, where a link is established between a specific behavior and its outcome.

Observational Learning

Learning that occurs through observing the behavior of others and the outcomes of those behaviors.

Reinforcement

A concept in behaviorism that describes any stimulus which strengthens or increases the probability of a specific response.