When Part of a Bank Loan Does Not Return to the Banking

question 317

Multiple Choice

When part of a bank loan does not return to the banking system but rather remains outside the banking system as currency,then the money multiplier ________ in size and the amount of money created by an open market operation ________.

• A)increases;decreases
• B)does not change;increases
• C)decreases;decreases
• D)increases;increases
• E)decreases;does not change

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Definitions:

Schizophrenia

A mental disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.

Hallucinations

Perceptions in the absence of external stimuli that have qualities of real perception, often seen in psychiatric conditions or drug-induced states.

Delusions

false beliefs firmly held despite clear or contradictory evidence, often seen in psychiatric conditions.

Delusions

Fixed false beliefs that are resistant to reason or confrontation with actual fact, often observed in psychiatric conditions.