Which Statement Most Accurately Reflects U

question 26

Multiple Choice

Which statement most accurately reflects U.S.trends with respect to divorce?

• A)In the century before World War II,the divorce rate had been steadily increasing.
• B)The rate of divorce has been increasing exponentially since 1980.
• C)The high divorce rates of the 1960s and 1970s represented a shift away from a trend.
• D)The divorce rate is unrelated to external social forces.

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Definitions:

Simple Money Multiplier

A formula used to determine the maximum amount of money that can be created by a bank's deposits under a fractional reserve banking system.

Required Reserve Ratio

The fraction of deposits that banks are legally mandated to keep as reserves and not lend out.

Excess Reserves

The reserves held by financial institutions in excess of the minimum reserve requirements set by central banks; these are not used for lending and can influence the money supply.

Commercial Banks

Financial institutions that provide services such as accepting deposits, providing business and personal loans, and offering basic investment products.