Use the Following to Answer Questions

question 182

Multiple Choice

Use the following to answer questions:
Charlotte withdraws $8000 from her chequable 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) Refer to Scenario: Money Supply Changes II.After the withdrawal,reserves _____,and chequable deposits _____.

• A) increase by $8000;increase by $8000
• B) increase by $1600;decrease by $1600
• C) decrease by $8000;decrease by $8000
• D) decrease by $1600;decrease by $1600

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Definitions:

Regulate

To control or maintain the rate or speed of a machine or process so that it operates properly; to govern or direct according to rule.

Concurrent Powers

Powers in federal systems of government shared by both the state and the federal government, such as the power to tax, build roads, and create lower courts.

Share Authority

The distribution of power and responsibilities among various governing bodies or officials.

Privileges and Immunities

The rights and protections granted to citizens of the U.S. by the Constitution, ensuring equality under the law.