Suppose the Banking System Does NOT Hold Excess Reserves and the Reserve

question 336

Multiple Choice

Suppose the banking system does NOT hold excess reserves and the reserve ratio is 20%. If Sam deposits $500 cash in his checking account, the banking system can increase the money supply by:

• A)$5,000.
• B)$2,000.
• C)$2,500.
• D)$400.

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Definitions:

Object Integration

The level of unification of an internalized relationship.

Psychodynamic

A perspective in psychology that emphasizes the systematic study of the psychological forces that underlie human behavior, feelings, and emotions and how they might relate to early experience.

Neo-analytic

Pertains to a school of thought in psychology that revises and expands upon Freudian and pre-Freudian psychoanalytic theories, emphasizing social and cultural factors more.

Repression

A defense mechanism where distressing thoughts, memories, or desires are excluded from the conscious mind.