The Following Is Information About a Banking System

question 172

Multiple Choice

The following is information about a banking system:
New currency deposited in the system = $40 billion;desired reserve ratio = 20%;
excess reserves prior to the currency deposit = $0.
-Refer to the above information.The $40 billion deposit of currency into chequing accounts will create excess reserves of:

• A) $20 billion.
• B) $32 billion.
• C) $40 billion.
• D) $0.

---

Definitions:

Cognitive Therapy

A psychological treatment approach that seeks to address maladaptive thinking patterns to alleviate psychological distress and promote adaptive behavior and cognition.

Behavior Can Be Conditioned

The concept that actions can be influenced or learned through associations with outcomes or stimuli, as seen in classical and operant conditioning.

Unconscious Thoughts

Mental processes that occur automatically and are not available to introspection.

How You Think

Refers to the processes and patterns involved in an individual's cognition or thought, including reasoning, problem-solving, and making judgments.