Which of the Following Is a Result of a Banking

question 78

Multiple Choice

Which of the following is a result of a banking transaction creating new excess reserves for a bank?

• A)An increase in the amount of loans made by the bank and an increase in the supply of money
• B)An increase in the amount of loans made by the bank and a decrease in the supply of money
• C)A decrease in the amount of loans made by the bank and an increase in the supply of money
• D)A decrease in the amount of loans made by the bank and a decrease in the supply of money
• E)An indeterminate effect on the money supply

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Definitions:

Cognitive

Related to the mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, and problem-solving.

Interactionist

An approach in sociology and psychology that emphasizes the mutual influence of individuals and society upon each other.

Innate Predisposition

An inherent inclination or tendency to behave or respond in a certain manner, often present from birth.

Decision Making

The mental process involved in choosing one option out of many possibilities.