Because of Widespread Risk Aversion in the Financial Sector in Recent

question 6

Multiple Choice

Because of widespread risk aversion in the financial sector in recent years, commercial banks in the United States have tended to hold __________ excess reserves than would otherwise have been the case. A result of this bank behavior is that the "money multiplier" in the U.S. economy is __________ than would otherwise have been the case.

• A) a larger amount of; smaller
• B) a larger amount of; larger
• C) a smaller amount of; smaller
• D) a smaller amount of; larger

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Definitions:

Order of Magnitude

An order of magnitude is a term used to express the scale or size of a quantity, typically in powers of ten, to compare approximate values or changes.

Binary Search Algorithm

An efficient algorithm for finding a target value within a sorted array by repeatedly dividing in half the portion of the list that could contain the target.

Infinite Recursion

A situation in which a function or method calls itself without an exit condition, leading to a stack overflow error.

Base Case

In recursive programming, a condition that stops the recursion by not making any further calls.