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If a Bank Gets a $100,000 New Deposit, Chooses to Lend

question 14

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If a bank gets a $100,000 new deposit, chooses to lend out $85,000, and increases its excess reserves by $5,000 at the same time, then the reserve requirement is:


Definitions:

Behavior Therapies

A range of therapies focused on modifying harmful behaviors through conditioning and other learning techniques.

Traditional Psychodynamic

A branch of psychology that focuses on the role of the unconscious mind in shaping behavior, based on early theories of Freud.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or destructive thought patterns to improve emotional regulation and develop personal coping strategies.

Self-help Groups

Organized gatherings where individuals share experiences and offer mutual support, often focusing on overcoming personal challenges or disorders.

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