The Size of the Money Multiplier Depends Upon All of the Following

question 35

Multiple Choice

The size of the money multiplier depends upon all of the following EXCEPT

• A)the required reserve ratio.
• B)the currency-deposit ratio.
• C)excess reserves relative to deposits.
• D)the discount rate.

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Definitions:

Decay

Loss of memory due to the passage of time, during which the memory trace is not used.

Proactive Interference

The phenomenon where old memories hinder the recall of newly learned information.

Retroactive Interference

A phenomenon in psychology where newly acquired information interferes with the recall of previously learned information.

Repression

A psychological defense mechanism where distressing thoughts, memories, or impulses are unconsciously pushed out of conscious awareness.