The Reserve-Deposit Ratio Is Likely to Increase Whenever

question 19

Multiple Choice

The reserve-deposit ratio is likely to increase whenever

• A)uncertainty about the net flow of bank deposits increases
• B)the market interest rate increases
• C)the Fed lowers reserve requirements
• D)the Fed increases the discount rate
• E)the Fed undertakes open market sales

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Definitions:

Sensation Seeking

A personality trait defined by the search for experiences and feelings that are varied, novel, complex, and intense, and the willingness to take physical, social, legal, and financial risks for the sake of such experiences.

Risks

The potential for losing something of value or the possibility of an unfavorable outcome.

Sensation Seeking Behavior

A trait characterized by the search for experiences and feelings that are varied, complex, novel, and intense.

Age

The length of time that a person or organism has been alive or a thing has existed.