If a Bank Had $200 Million in Demand Deposits and Faced

question 31

Multiple Choice

If a bank had $200 million in demand deposits and faced a 40 percent reserve requirement, it would be required to hold ____ as reserves and could have a total amount of loans issued up to ____.

• A)​$120 million; $80 million
• B)​$80 million; $120 million
• C)​$200 million; $500 million
• D)​$500 million; $200 million

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Definitions:

Curve Of Forgetting

A graph showing a distinct pattern in which forgetting is very fast within the first hour after learning a list and then tapers off gradually.

Ebbinghaus

A psychologist known for his research on memory and the forgetting curve, the decline of memory retention over time.

Retrieval Period

The timeframe during which a memory or piece of information is recalled or retrieved from the storage after learning.

Decay Theory

A theory of forgetting that proposes that memories may fade or erode over time in the absence of rehearsal or usage.