In a System of 100-Percent-Reserve Banking

question 43

Multiple Choice

In a system of 100-percent-reserve banking,

• A)banks do not accept deposits.
• B)banks do not influence the supply of money.
• C)loans are the only asset item for banks.
• D)All of the above are correct.

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Definitions:

Lowball Technique

A persuasion strategy where an initially favorable offer is made, then its terms are made less favorable.

Evolutionary Psychologists

Scientists who study the psychological adaptations of humans to the changing physical and social environment, particularly from an evolutionary perspective.

Ingroup

A group of people with whom an individual mentally associates themselves as belonging.

Outgroups

Groups of people not belonging to the primary in-group, often viewed with prejudice or as outsiders.