Refer to the Information Provided in Scenario 10

Multiple Choice

Refer to the information provided in Scenario 10.1 below to answer the questions that follow.
SCENARIO 10.1: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
-Refer to the Economics in Practice on p. 193: The Economics in Practice feature discusses three examples of many people who have claims on a bank presenting those claims at the same time. This describes a situation known as

A) barter.
B) a bank run.
C) currency debasement.
D) the liquidity property of money.