Use the Following to Answer Questions

question 295

Multiple Choice

Use the following to answer questions:
The reserve requirement is 10% and Jack withdraws $5000 travel money from his chequable deposit.Assume that banks do not hold any excess reserves and that the public holds no currency,only chequable bank deposits.
-(Scenario: Money Supply Changes) Refer to Scenario: Money Supply Changes.As a result of the withdrawal,required reserves _____ by _____.

• A) increase;$5000
• B) increase;$500
• C) decrease;$5000
• D) decrease;$500

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Definitions:

Phallic Stage

Freudian concept indicating the third stage of child psychosexual development, where the libido (sexual energy) focuses on genital organs.

Freud

Sigmund Freud, originating from Austria and a neurologist by profession, introduced the concept of psychoanalysis, which involves treating mental health issues via dialogue with a psychoanalyst.

Psychosexual Stages

A central element of Freudian theory positing that individual personality development occurs through five stages (oral, anal, phallic, latency, genital) from infancy to adulthood, each focusing on sexual pleasure from different body areas.

Id

Within the psychoanalytic framework, this refers to the segment of the psyche where innate primal impulses and fundamental processes become apparent.