Decreasing the Reserve Requirement Ratio Is

question 198

Multiple Choice

Decreasing the reserve requirement ratio is

• A) a contractionary policy because it lowers the amount of total reserves in the banking system.
• B) a contractionary policy because it lowers the amount of excess reserves in the banking system.
• C) an expansionary policy because it raises the amount of excess reserves in the banking system.
• D) an expansionary policy because it raises the amount of required reserves in the banking system.

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, often based on race, age, sex, or disability.

Bias

Prejudice in favor of or against one thing, person, or group compared with another, usually in a way considered to be unfair.

Initiating Structure

Leadership behavior that involves setting goals, giving directions, and establishing clear standards of performance for team members.

Consideration

In leadership, refers to the degree to which a leader shows concern and respect towards their followers, attends to their needs, and fosters a supportive work environment.