At One Time,people in a Certain Country Had No Access

question 28

Multiple Choice

At one time,people in a certain country had no access to banks;they relied exclusively on currency.Then,a fractional-reserve banking system was created.As a result,the money supply

• A)increased.The central bank could have reduced the size of this increase by buying bonds.
• B)increased.The central bank could have reduced the size of this increase by selling bonds.
• C)decreased.The central bank could have reduced the size of this decrease by buying bonds.
• D)decreased.The central bank could have reduced the size of this decrease by selling bonds.

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Definitions:

Cognitive Adaptation

The mental process of adjusting thinking to incorporate new information, concepts, or experiences through mechanisms of assimilation and accommodation, facilitating learning and understanding of the world.

Piaget's Theory

A theory of cognitive development that outlines how children progress through a series of stages, each marked by unique intellectual challenges and achievements.

Equilibrium

A state of balance or stability, often referring to the body's ability to maintain its center of gravity, or in psychology, a state of mental or emotional balance.

Assimilation

The process by which a person or a group's language and/or culture come to resemble those of another group.