When a Bank Lends Excess Reserves to a Customer

question 231

Multiple Choice

When a bank lends excess reserves to a customer:

• A)this does not affect the money supply.
• B)the money supply is increased.
• C)the money supply is decreased.
• D)it has the same effect as when one customer writes a check to another customer at a different bank.

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Definitions:

Medication Molecules

The chemical compounds that make up medications, which interact with the body to produce therapeutic effects.

Constructionist Perspective

A theoretical viewpoint that suggests social realities are constructed through human interaction and interpretation.

Deviants

refers to individuals or behaviors that deviate from societal norms or expectations, often carrying a negative connotation.

Passive Objects

describes entities or individuals that receive actions or are acted upon without actively responding or initiating action.