If All Banks Are Subject to a Uniform 20% Reserve

question 103

Multiple Choice

If all banks are subject to a uniform 20% reserve requirement and demand deposits are the only form of money,a $1,000 open market purchase by the Fed would cause the money supply to

• A)increase by $1,000.
• B)decrease by $1,000.
• C)decrease by $5,000.
• D)increase by $5,000.

---

Definitions:

HIPAA

The Health Insurance Portability and Accountability Act, a US law designed to provide privacy standards to protect patients' medical records and other health information.

Data Confidentiality

The practice of ensuring that sensitive information is accessible only to those authorized to view it.

Health Insurance

A system of financial protection against medical expenses for individuals, provided through private or government schemes.

IRB Committee

A group tasked with reviewing and overseeing research involving human participants to ensure ethical standards are met.