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:

Emotional Displays

Observable manifestations of emotions through facial expressions, body language, and other nonverbal cues.

Emotionally Literate

The ability to understand and express feelings effectively, recognizing one's own emotions and those of others.

Nonverbal Behavior

Communication without the use of spoken language, involving gestures, facial expressions, body language, and other physical cues.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions, often through art, dialogue, or therapy.