The Writing of a $1,000 Check That Is Drawn on Bank

question 315

Multiple Choice

The writing of a $1,000 check that is drawn on Bank A and deposited in Bank B

• A)increases the money supply initially by $1,000.
• B)reduces total reserves of Bank A by $1,000 and increases the total reserves of Bank B by the same amount.
• C)reduces the required reserves of Bank A by $1,000 and increases the required reserves of Bank B by the same amount.
• D)reduces the excess reserves of Bank A by $1,000 and increases the excess reserves of Bank B by the same amount.

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Definitions:

Posttest-Only Control

A research design where subjects are assigned to experimental or control groups and are tested on the dependent variable only after the treatment.

Confidentiality

The ethical and often legal obligation to keep someone's personal information private, especially within a professional or research context.

Within-Subjects Design

A research design in which the same group of subjects is exposed to all different treatments or conditions, allowing direct comparison of the effects of each treatment on the same individuals.

Error Variance

Refers to the variation in a set of scores that is caused by extraneous variables or random error, not by the variables under investigation.