If There Is No Currency and the Proceeds of All

question 34

Multiple Choice

If there is no currency and the proceeds of all loans are deposited somewhere in the banking system and if rr denotes the reserve-deposit ratio, then the total money supply is:

• A) reserves divided by rr.
• B) 1/rr.
• C) reserves times rr.
• D) reserves divided by (1 - rr).

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Definitions:

Scoring System

A method or criteria used to quantify actions, performance, responses, or achievements in various contexts.

Psychologists

Professionals who study mental processes and behavior through research and observation, often providing counseling and therapy.

Rorschach Blot

A projective psychological test consisting of inkblots presented to a subject, whose interpretations of the shapes are analyzed to assess emotional function and personality.

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A professional trained to provide psychological treatment and support to individuals or groups.