If the Fed Imposed a 100% Reserve Requirement, It Would

question 24

Multiple Choice

If the Fed imposed a 100% reserve requirement, it would imply that

• A)the Fed had no control over money supply
• B) the Fed would no longer be able to conduct any open market operations
• C) the money multiplier would be equal to one
• D)the money multiplier would be equal to zero
• E)banks would become completely obsolete

---

Definitions:

New Imperialism

A period of colonial expansion by European powers, the United States, and Japan during the late 19th and early 20th centuries.

Aggressive Nationalism

A fervent form of nationalism that promotes a nation's interests above all others, often leading to conflict, expansionism, or militarism.

Cecil Rhodes

A British businessman and imperialist advocate instrumental in British colonization of Southern Africa and the founder of the diamond company De Beers.

Philanthropy

The act of giving money, goods, time, or effort to support a charitable cause, often aimed at improving human welfare.