The Fact That Reserves Lost by Any Particular Bank Will

question 15

Multiple Choice

The fact that reserves lost by any particular bank will be gained by some other bank explains why the commercial banking system:

• A) Has been able to reduce the vulnerability of banks to "runs" or "panics"
• B) Can increase its demand deposits by a multiple of its excess reserves
• C) Cannot increase its demand deposits by a multiple of its excess reserves
• D) Has been based on the fractional reserve system of banking

---

Definitions:

Sickly Child

A term that describes a child who experiences chronic illness or poor health over an extended period.

Karl Jung

Karl Jung was a Swiss psychiatrist and psychoanalyst who founded analytical psychology, known for concepts such as the collective unconscious, archetypes, and individuation.

Neo-Freudian

A descriptor for theorists who originated from or were influenced by Freud's ideas but later diverged in their thoughts, emphasizing social factors more than instinctual drives.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, known for his theories of the unconscious mind.