Use the Following to Answer Questions

question 346

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.As a result of the withdrawal,required reserves:

• A) decrease by $1600.
• B) decrease by $6400.
• C) decrease by $8000.
• D) don't change.

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Definitions:

Electoral College

A body of electors established by the United States Constitution, which is responsible for electing the president and vice president.

Voters

Individuals who are eligible and participate in elections to choose representatives or decide on public questions.

State

An organized political community under one government, recognized as sovereign by external policies.

Mail-order Politics

A form of political engagement and organization where support, funds, and materials are solicited and distributed through postal mail, often for campaigns or causes.