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:

Excavates

A group of unicellular organisms, many of which are flagellates, that includes both free-living and parasitic species.

Ciliates

A group of protozoans characterized by the presence of hair-like structures called cilia used for movement and feeding.

Actinopods

A group of protozoa characterized by long, slender pseudopodia used for catching food and locomotion.

Cytoplasmic Projections

Extensions of the cell's cytoplasm, such as cilia and flagella, that can move the cell or move fluids past the cell.