Suppose That Initially a Bank Has Excess Reserves of $800

question 345

Multiple Choice

Suppose that initially a bank has excess reserves of $800 and the reserve ratio is 20%.Then Andy deposits $1 000 of cash in his chequing account and the bank lends $600 to Molly.That bank can lend an additional:

• A) $200.
• B) $1 000.
• C) $800.
• D) $2 400.

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Definitions:

Rogers

Pertains to Carl Rogers, a significant American psychologist and a founding figure of the humanistic psychology movement.

Humanistic Perspective

A psychological approach that emphasizes individual potential for growth, and focuses on the self and the individual's unique perception of the world, promoting a more holistic perspective of mental health.

Negative Aspects

Refers to the unfavorable or detrimental features, effects, or impacts associated with a situation, process, or thing.

Self-Actualizing

The process of realizing and fulfilling one's own potential and capabilities, often considered the pinnacle of personal development in Maslow's hierarchy of needs.