When a Bank Makes a Loan by Crediting the Borrower's

question 102

Multiple Choice

When a bank makes a loan by crediting the borrower's checking account balance with an amount equal to the loan:

• A)money is created.
• B)the bank gains new reserves.
• C)the bank immediately loses reserves.
• D)the Fed has made an open-market purchase.

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Definitions:

Alcohol Use Disorder

A medical condition characterized by an impaired ability to stop or control alcohol use despite adverse social, occupational, or health consequences.

Abstinence Violation Effect

A phenomenon occurring when an individual in recovery from substance use lapses or relapses, leading to feelings of guilt and perceived failure, potentially exacerbating further substance use.

Pre-Treatment

A stage or activities that occur before the commencement of a primary treatment, often involving assessment or preparatory interventions.

Abstinence Violation

A concept in addiction recovery that refers to a person's sense of failure or guilt after breaking a commitment to abstain from substance use or certain behaviors.