When a Bank Obtains a Loan from the Fed,it Follows

question 72

Multiple Choice

When a bank obtains a loan from the Fed,it follows that the

• A) simple deposit multiplier rises.
• B) bank (itself)can create more loans.
• C) bank's reserves decrease.
• D) bank's reserves remain unchanged.
• E) none of the above

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Definitions:

Meat Powder

A substance used by Ivan Pavlov in his classical conditioning experiments as an unconditioned stimulus to elicit an unconditioned salivation response in dogs.

Salivation

The production and release of saliva in the mouth, often in response to the sight, smell, or taste of food.

Classical Conditioning

An educational method where an indifferent stimulus is linked with a significant stimulus, thereby gaining the ability to provoke comparable reactions.

Automaker

A company that manufactures and sells automobiles, playing a key role in the automotive industry.