Use the Following to Answer Questions

question 107

Multiple Choice

Use the following to answer questions :
Scenario: Money Supply Changes II
Charlotte withdraws $8,000 from her checkable 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) Look at the scenario Money Supply Changes II. As a result of the withdrawal, loans _____ by _____.

• A)increase; $8,000
• B)decrease; $8,000
• C)decrease; $6,400
• D)decrease; $1,600

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Definitions:

Instinctive Behavior

Actions or reactions that are inherently present in an individual from birth, not learned through experience or observation.

Serotonin

A neurotransmitter believed to play many roles, including regulating mood, appetite, and sleep, and involved in some cognitive functions such as memory and learning.

Testosterone

Testosterone is a steroid hormone that plays a key role in the development of male reproductive tissues and secondary sexual characteristics, though it is also present in females.

Oxytocin

A hormone and neurotransmitter often associated with bonding, trust, and the regulation of social behaviors.