-The Above Table Has the Balance of the University National

question 405

Multiple Choice

-The above table has the balance of the University National Bank. All figures are in millions of dollars. The desired reserve ratio is 20 percent. What would be the total increase in loans at this bank if all excess reserves were loaned out?

• A) $0
• B) $600 million
• C) $1,160 million
• D) $232 million

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Definitions:

Diffusion Of Responsibility

A sociopsychological phenomenon whereby a person is less likely to take responsibility for action or inaction when others are present, often used to explain the bystander effect.

Social Loafing

The phenomenon whereby individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Self-fulfilling Prophecy

A forecast that becomes a reality due to the positive feedback loop between someone's belief and actions, either directly or indirectly causing its own fulfillment.

Likert Scale

A psychometric scale commonly used in questionnaires to measure attitudes or opinions, featuring a range of answers from one extreme to another.