When an Individual Deposits Currency into a Checking Account

question 26

Multiple Choice

When an individual deposits currency into a checking account:

• A)bank reserves increase, which allows banks to lend more and increases the money supply.
• B)bank reserves decrease, which reduces the amount banks can lend and reduces the growth of the money supply.
• C)bank reserves are unchanged.
• D)bank liabilities increase, which reduces the amount banks can lend and reduces the growth of the money supply.

---

Definitions:

Anxious

Experiencing worry, unease, or nervousness, typically about an imminent event or something with an uncertain outcome.

Withdrawn

A state or behavior characterized by a reluctance to engage with others or participate in social activities, often due to emotional or psychological reasons.

Securely Attached

A term describing individuals who have a positive view of themselves and their relationships, leading to healthy and trusting interpersonal connections.

Separation Anxiety

A disorder characterized by excessive fear or anxiety about being apart from attachment figures or familiar home environments.