At One Time,people in a Certain Country Had No Access

question 28

Multiple Choice

At one time,people in a certain country had no access to banks;they relied exclusively on currency.Then,a fractional-reserve banking system was created.As a result,the money supply

• A)increased.The central bank could have reduced the size of this increase by buying bonds.
• B)increased.The central bank could have reduced the size of this increase by selling bonds.
• C)decreased.The central bank could have reduced the size of this decrease by buying bonds.
• D)decreased.The central bank could have reduced the size of this decrease by selling bonds.

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Definitions:

Acquisition

The process of gaining a new skill, knowledge, behavior, or object through experience, practice, or the act of obtaining.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Extinction

In psychology, the diminishing of a conditioned response when the reinforcement is withheld or the stimulus is repeatedly presented without the unconditioned stimulus.

Generalization

The process of applying the knowledge or response acquired from specific stimuli to similar stimuli.