Which of the Following Happens in a 100-Percent-Reserve Banking System

question 109

Multiple Choice

Which of the following happens in a 100-percent-reserve banking system?

• A)Banks can create money by issuing currency.
• B)Banks can create money by lending out reserves.
• C)The Bank of Canada can increase the money supply with open market sales.
• D)Banks hold as many reserves as they hold deposits.

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Definitions:

Temper Tantrums

Emotional outbursts, often characterized by crying, screaming, or aggressive behaviors, common in young children as a response to frustration or not having their needs met.

Gold Star

A symbol of praise or achievement, often used in educational and military contexts to signify excellence or high standards.

Systematic Desensitization

A behavioral therapy technique aimed at reducing phobic or anxiety responses through gradual exposure to the feared object or situation, combined with relaxation exercises.

Contingency Contract

A behavioral intervention technique that involves a formal agreement between two parties to reinforce desired behaviors with rewards or consequences.