Use the Following to Answer Questions

question 399

Multiple Choice

Use the following to answer questions :
Scenario: Money Supply Changes
The reserve requirement is 10% and Jack withdraws $5,000 travel money from his checkable deposit. Assume that banks do not hold any excess reserves and that the public holds no currency, only checkable bank deposits.
-(Scenario: Money Supply Changes) Look at the scenario Money Supply Changes. By how much must the bank's loans decrease as a result of the withdrawal?

• A)$5,000
• B)$4,500
• C)$500
• D)$0

---

Definitions:

The Free Edge

The portion of the nail that extends beyond the fingertip, not attached to the underlying nail bed.

Basal Cell Carcinoma

A type of skin cancer that originates from basal cells in the skin's lower layers and is characterized by slow growth and seldom metastasizes.

Melanoma

A type of skin cancer that develops from the pigment-producing cells known as melanocytes.

Squamous Cell Carcinoma

A type of cancer that arises from flat cells of the epidermis, often associated with sun exposure, and is characterized by its ability to spread to other parts of the body.