When a Member of the Nonbank Public Deposits Currency into Her

question 44

Multiple Choice

When a member of the nonbank public deposits currency into 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 rise, but the monetary base remains unchanged.

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Definitions:

Work Ethic

The principle that hard work is intrinsically virtuous or worthy, often reflected in a person's attitudes toward their job.

Goal-Setting Theory

A motivational theory that emphasizes the significance of setting specific, measurable, achievable, relevant, and time-bound goals to improve performance.

Indirect Effects

The impact of one variable on another mediated through one or more intervening variables, rather than a direct cause-and-effect relationship.

Mortgage

A loan specifically for purchasing real estate, in which the property itself serves as collateral against the debt.