Which of the Following Results in a Net Liquidity Drain

question 7

Multiple Choice

Which of the following results in a net liquidity drain?

• A)Demand deposits increase $100; loans increase $50.
• B)Demand deposits decrease $100; loan repayments are $150.
• C)Repurchase agreements increase $100; demand deposits decrease $50.
• D)Reverse repurchase agreements increase $50; demand deposits decrease $50.
• E)None of these choices are correct.

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Definitions:

Vicarious Reinforcement

A psychological concept where individuals learn and modify behaviors by observing the consequences of others' actions without directly experiencing them.

Constant Encouragement

Ongoing support and motivation aimed at inspiring individuals or groups to continue a course of action or to achieve goals.

Being Rewarded

The act of receiving something, often of value, in recognition or exchange for one's effort or achievement.

Online Settings

pertains to the configuration or environment settings within digital platforms, including privacy, display, and interaction options.