Which of the Following Statements Is True

question 183

Multiple Choice

Which of the following statements is true?

• A) The higher the required reserve ratio, the higher the deposit multiplier.
• B) The higher the excess reserves, the higher the deposit multiplier.
• C) The value of the deposit multiplier falls if economic agents withdraw cash from the banking system.
• D) The deposit multiplier only works to increase money supply, not to decrease money supply.

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Definitions:

Childhood

The period of time in a person's life that is from birth to puberty, characterized by growth and development.

Higher Needs

In Maslow's hierarchy, these are the psychological needs that appear after basic physical needs are met, including esteem and self-actualization needs.

Lower Needs

Typically refers to the more basic needs in Maslow's hierarchy, such as physiological needs and safety, which must be met before higher-level needs can be addressed.

Survival

The act of continuing to live or exist, typically in spite of an accident, ordeal, or difficult circumstances.