If the Level of Excess Reserves in the Banking System

question 81

Multiple Choice

If the level of excess reserves in the banking system drops suddenly, we might expect that the:

• A)discount rate would rise.
• B)federal funds rate would rise.
• C)required reserve ratio would fall.
• D)prime rate would fall.

---

Definitions:

Change Management Process

A systematic approach to dealing with the transition or transformation of an organization's goals, processes, or technologies.

Double-Loop Learning

Double-Loop Learning is a process wherein an organization or individual questions and modifies its objectives, strategies, or beliefs in response to the results of actions.

Unfreezing

As the initial stage of organizational change, unfreezing involves the development of a shared understanding among stakeholders that a particular change is necessary.

Resistance To Organizational Change

The opposition or pushback by employees or stakeholders when an organization attempts to make significant changes to its structure or processes.