If a bank's reserve requirement is to hold 20% of deposits, then the relationship between reserves and lending is similar to how a teacher's grading policy influences student performance. A:Reserves:B:Lending :: C:Grading Policy:?

The relationship between reserves and lending in a bank is similar to how a teacher's grading policy influences student performance because both create limits and opportunities. When a bank must keep 20% of deposits as reserves, it can only lend out the remaining 80%. This means the more deposits a bank has, the more it can lend, just like a teacher’s grading policy affects how students can perform based on their understanding of the material. For example, if a teacher rewards students for completing homework, those who do the work are likely to perform better on tests, just as banks that manage their reserves well can help the economy grow by lending more. In both cases, the structure in place shapes the outcomes, whether it’s money in the economy or student success in school.