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If a Bank Has 1,000 Depositors, Each of Whom Deposits

question 45

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If a bank has 1,000 depositors, each of whom deposits $1,000 in the bank, and the bank makes loans of $10,000 each, then each depositor has contributed:


Definitions:

Egalitarian Society

A society where all members are considered equal, having the same rights and opportunities.

Bureaucracy

A system of administration characterized by strict policies, procedures, and hierarchy intended to ensure efficiency and effectiveness in large organizations.

Social Learning Theory

A theory that proposes people can learn new behaviors through observation and imitation of others, alongside direct reinforcement of actions.

Reinforcement

is a concept in psychology that refers to a method of strengthening a desired behavior by rewarding it or reducing negative outcomes for the individual.

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