In a 100-Percent-Reserve Banking System, If a Customer Deposits $100

question 54

Multiple Choice

In a 100-percent-reserve banking system, if a customer deposits $100 of currency into a bank, then the money supply:

• A) increases by $100.
• B) decreases by $100.
• C) increases by more than $100.
• D) remains the same.

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Definitions:

Edible Fruit

A part of a plant that is consumed by humans or other animals for its nutritional value, typically sweet and fleshy.

Food Gardens

Plots of land used for growing fruits, vegetables, herbs, and other edible plants, typically for household consumption.

Speaker's Commitment

The implicit or explicit convictions a speaker holds and conveys through their statements during communication or argumentation.

Implicit Premise

An unstated element of an argument that is needed to make the conclusion follow from the premises given.