If There Is Only One Bank in an Economy

question 32

Multiple Choice

If there is only one bank in an economy:

• A) Reserves never leave the bank.
• B) Transactions accounts equal bank reserves.
• C) Loans equal bank reserves.
• D) Loans equal transaction accounts.

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Definitions:

Hypertrophy

An increase in the size of muscles or tissues, often as a result of exercise.

Atrophy

The reduction in size and function of a tissue or organ due to aging, disease, or lack of use.

Blood Flow

The continuous circulation of blood through the heart and vascular system, delivering nutrients and oxygen to tissues.

Neurotransmitter

Chemical substances released by neurons that transmit signals across a synaptic gap to another neuron or to a muscle or gland cell.