Which of the Following Does NOT Explain Why the Actual

question 202

Multiple Choice

Which of the following does NOT explain why the actual money multiplier and the potential money multiplier are different?

• A) Banks hold excess reserves during tough economic times.
• B) The interest rate that banks pay on deposits is very low.
• C) Foreign deposits in American banks aren't counted in the actual money multiplier.
• D) Foreign consumers,businesses,and governments hold U.S.dollars.

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Definitions:

Personal Experiences

are individual occurrences or events encountered in a person's life, shaping their perceptions, beliefs, and reactions to future situations.

Free Association

In psychoanalysis, the uncensored uttering of all thoughts that come to mind.

Unconscious Processes

Mental activities beyond conscious awareness that influence thoughts, feelings, and behaviors.

Defense

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.