If the Proceeds of All Loans Are Deposited Somewhere in the Banking

question 57

Multiple Choice

If the proceeds of all loans are deposited somewhere in the banking system and if rr denotes the reserve-deposit ratio, then the total money supply is:

• A)reserves divided by rr.
• B)1/rr.
• C)reserves times rr.
• D)reserves divided by (1 - rr).

---

Definitions:

Repressed Memories

Recollections that are involuntarily suppressed because they are linked to severe stress or trauma.

Dream Analysis

A psychoanalytic technique used to explore the hidden meanings and symbols in dreams, often associated with the work of Freud.

Sexual Abuse

Any unwanted or coerced sexual activity, often exerting power or control over the victim.

Loyalty

A strong feeling of support or allegiance to someone or something.