Assume That Desired Reserves Are 20 Percent

question 123

Multiple Choice

Assume that desired reserves are 20 percent.If the Bank of Canada buys $1,000 worth of bonds from a member bank,then the banking system can

• A)increase loans by a maximum of $5,000.
• B)increase loans by a maximum of $4,000.
• C)decrease loans by a maximum of $5,000.
• D)decrease loans by a maximum of $4,000.

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Definitions:

Heritability of Traits

The proportion of variation in traits among individuals that can be attributed to genetic factors.

Twin Studies

An approach in psychology and genetics to quantify the relative contributions of heredity and environment to individual variances in traits and disorders by analyzing twins.

Five Factor Model

A theory identifying five core personality traits (openness, conscientiousness, extraversion, agreeableness, and neuroticism) as fundamental building blocks of personality.

Lateral Prefrontal Cortex

A region of the prefrontal cortex involved in high-level cognitive functions, including decision-making and working memory.