Currency in Circulation Plus Bank Reserves

question 325

Multiple Choice

Currency in circulation plus bank reserves:

• A)forms the monetary base.
• B)is equal to M1 plus M2.
• C)equals the required reserves for a bank.
• D)equals the excess reserves for a bank.

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Definitions:

Instinct

Natural, unchanging behaviors exhibited by animals in reaction to specific triggers.

Drive-Reduction

A theory of motivation that posits the reduction of physiological needs drives behavior towards achieving homeostasis.

Arousal Approach

a theory in psychology that focuses on how arousal levels affect performance, suggesting an optimal level of arousal for peak performance depending on the task complexity.

William McDougall

A psychologist known for his work on instinct theory and social psychology, advocating for the inclusion of innate tendencies in explaining behavior.