Suppose That While Vacationing in Switzerland, You Won 9,375 Swiss

question 125

Multiple Choice

Suppose that while vacationing in Switzerland, you won 9,375 Swiss francs, which is the equivalent of $8,000. When you return to the United States, you deposit the $8,000 into your checking account. If the required reserve ratio is 15 percent, this would increase your bank's

• A) liabilities by $8,000.
• B) excess reserves by $8,000.
• C) required reserves by $8,000.
• D) assets by $1,200.

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Definitions:

Groupthink

A phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

System Justification

The psychological tendency to defend, bolster, and justify prevailing social, economic, and political systems, even at the detriment to personal and group interests.

Constructive Criticism

Feedback aimed at improving future performance by highlighting weaknesses and suggesting ways to improve while maintaining a supportive tone.

Group Harmony

The cohesion and agreement among members of a group that contribute to its functioning and the well-being of its members.