If the Desired Reserve Ratio Falls

question 22

Multiple Choice

If the desired reserve ratio falls:

• A)banks would be prompted to reduce their lending.
• B)the size of the money multiplier would increase.
• C)the actual reserves of banks would increase.
• D)none of the above would occur.

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Definitions:

Elevation

The height of a location above a specific reference point, usually above sea level.

Deformation

The alteration of the shape or size of rocks due to stress or strain, including processes like folding, faulting, and shearing.

Subsidence

The sinking or settling of the Earth's surface, often due to natural geological processes or human activities.

Uplift

A process that causes regions of the Earth's surface to rise due to structural changes in the Earth's crust or mantle.