If Banks Have Zero Excess Reserves,then the Net Effect of Any

question 71

Multiple Choice

If banks have zero excess reserves,then the net effect of any check writing and depositing on the money supply is

• A)positive since the required reserve ratio is less than one.
• B)positive as long as no one takes cash out of the system.
• C)zero,since the gain in excess reserves at one bank are exactly offset by a reduction in excess reserves at another bank.
• D)negative since one bank loses more in total reserves than the other bank gets in excess reserves.

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Definitions:

Continuous Reinforcement

A learning schedule in which a behavior is reinforced each time it occurs, leading to a rapid acquisition of the behavior.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response.

Operant Conditioning

A learning method where the consequences of a behavior influence the likelihood of that behavior occurring again.

Organisms Learn

The process by which living organisms acquire new behaviors or modify existing ones through experience and interaction with the environment.