If the Reserve Requirement Is 15 Percent and a Customer

question 17

Multiple Choice

If the reserve requirement is 15 percent and a customer makes a new cash deposit of $50,000, how much new excess reserves are created?

• A)$7,500
• B)roughly $33,000
• C)$67,500
• D)$42,500
• E)$50,000

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Definitions:

Herbert Simon

An economist, political scientist, and cognitive psychologist who made significant contributions to the fields of artificial intelligence, economics, and cognitive psychology, and who was awarded the Nobel Prize in Economics in 1978.

Comprehensive

Inclusive, covering completely or broadly, often describing an extensive or thorough approach or assessment.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Sensory-Specific Satiety

The reduced satisfaction or interest in a specific taste or type of food after consuming a significant amount of it, leading to a desire for flavor variety.