Use the Following to Answer Questions

question 290

Multiple Choice

Use the following to answer questions :
Scenario: Holding Cash
Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20%. Banks hold no excess reserves. A customer deposits $6,000 in her checkable deposit.
-(Scenario: Holding Cash) Look at the scenario Holding Cash. As a result of the deposit, the bank's loans will increase by:

• A)$6,000.
• B)$1,200.
• C)$3,000.
• D)$4,800.

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Definitions:

Hypothalamus

A region of the brain responsible for producing hormones that control body temperature, hunger, moods, release of hormones from many glands, especially the pituitary gland, sleep, and thirst.

Appetite

The natural desire or urge to eat, which is regulated by physiological mechanisms in response to the body's energy needs.

Muscular Coordination

The ability to use different muscles together smoothly and efficiently to perform movements.

Cerebellum

A region of the brain that plays a significant role in motor control, coordination, and balance.