Use the Following to Answer Questions

question 362

Multiple Choice

Use the following to answer questions :
Scenario: Money Supply Changes II
Charlotte withdraws $8,000 from her checkable bank deposit to pay tuition this semester. Assume that the reserve requirement is 20% and that banks do not hold excess reserves.
-(Scenario: Money Supply Changes II) Look at the scenario Money Supply Changes II. As a result of the withdrawal, required reserves:

• A)decrease by $1,600.
• B)decrease by $6,400.
• C)decrease by $8,000.
• D)don't change.

---

Definitions:

α-Carbon

The carbon atom adjacent to the functional group in an organic molecule, particularly significant in amino acids and carbonyl compounds.

Amines

Organic compounds and functional groups that contain a basic nitrogen atom with a lone pair, often classified as primary, secondary, or tertiary.

Base

A substance capable of accepting protons according to the Bronsted-Lowry theory or donating electron pairs in Lewis theory; it counteracts acids.

Amines

Organic compounds composed of nitrogen atoms bonded to alkyl or aryl groups, behaving as bases.