The Chartered Banking System Can Lend by a Multiple of Its

question 86

Multiple Choice

The chartered banking system can lend by a multiple of its excess reserves primarily because:

• A)its reserves are on deposit with the Bank of Canada
• B)its reserves are highly liquid assets.
• C)it loses reserves when it extends credit.
• D)its reserves are fractional.

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Definitions:

Dissociative Identity Disorder

A psychological condition characterized by the presence of two or more distinct personality states that control an individual's behavior at different times.

Fugue State

A rare psychological state involving loss of personal identity and memory, often accompanied by unexpected travel or wandering.

Psychogenic Amnesia

A memory disorder characterized by sudden retrograde episodic memory loss, said to occur for a period of time proceeding a traumatic event, though not due to direct physical damage.

Catatonic Schizophrenia

A type of schizophrenia characterized by abnormal movement patterns, including stupor, rigidity, or excessive, purposeless movements.