When a Member of the Nonbank Public Withdraws Currency from Her

question 40

Multiple Choice

When a member of the nonbank public withdraws currency from her bank account,

• A) both the monetary base and bank reserves fall.
• B) both the monetary base and bank reserves rise.
• C) the monetary base falls, but bank reserves remain unchanged.
• D) bank reserves fall, but the monetary base remains unchanged.

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Definitions:

Exposure Therapy

A psychological treatment that involves gradually and systematically exposing individuals to the objects or situations they fear to reduce anxiety.

Posttraumatic Stress Disorder

A psychiatric disorder that can occur in people who have experienced or witnessed a traumatic event, characterized by flashbacks, severe anxiety, and uncontrollable thoughts about the event.

Bipolar Disorder

A mental disorder characterized by extreme mood swings from manic highs to depressive lows.

Selective Serotonin Reuptake Inhibitors

A class of drugs commonly used to treat depression and anxiety by increasing levels of serotonin in the brain.