Since Reserve Requirements on Time and Savings Deposits Were Phased

question 48

Multiple Choice

Since reserve requirements on time and savings deposits were phased out in the early 1990s,

• A)only the M1 money multiplier is affected by increases in time and savings deposits.
• B)only the M2 money multiplier is affected by increases in time and savings deposits.
• C)neither the M1 nor the M2 money multipliers are affected by increases in time and savings deposits.
• D)both the M1 and M2 money multipliers are affected by increases in time and savings deposits.

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Definitions:

Sympathetic Nervous System

The part of the autonomic nervous system that arouses the body to mobilize it for action and thus is involved in the experience of stress.

James-Lange Theory

The theory that emotion results from physiological states triggered by stimuli in the environment.

Parasympathetic Nervous System

The part of the autonomic nervous system responsible for relaxation and conserving energy by slowing the heart rate and increasing intestinal and gland activity.

Polygraph

A machine, commonly called a lie detector, that monitors changes in the body, and is used to try to determine whether someone is lying.