If People Choose to Hold Some of a Newly Received

question 75

Multiple Choice

If people choose to hold some of a newly received loan as cash instead of keeping it in a checking account,_____.

• A)the money supply will not increase as much as it would had borrowers deposited all of the money
• B)the money supply will remain unchanged
• C)the money supply will decrease as much as it would had borrowers deposited all the money
• D)the banking system will collapse
• E)the economy will experience a recession

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Definitions:

Adolescence

A developmental stage that marks the transition from childhood to adulthood, characterized by significant physical, psychological, and social changes.

Popular Crowd

A social group within a larger community, often viewed as having high status or desirability by peers.

Adolescents

The transitional phase of growth and development between childhood and adulthood, characterized by various physical, psychological, and social changes.

High Schools

Educational institutions providing secondary education, typically for students aged about 14-18, preparing them for higher education or vocational training.