If Many Banks Fail, This Is Likely To

question 94

Multiple Choice

If many banks fail, this is likely to:

• A)increase the ratio of currency to deposits.
• B)decrease the ratio of currency to deposits.
• C)have no effect on the ratio of currency to deposits.
• D)decrease the amount of currency in circulation if the Bank of Canada takes no action.

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Definitions:

Dizygotic Development

The biological process resulting in the birth of two or more offspring from the same pregnancy with each developing from a separate egg fertilized by its own sperm, also known as fraternal twinning.

Nature And Nurture

The debate concerning the relative importance of an individual's innate qualities (nature) versus personal experiences (nurture) in determining or causing differences in physical and behavioral traits.

Environmentally Adaptive

The ability of an organism or a system to adjust or change in response to environmental factors.

Reproductive Success

The success a living organism has in passing its genes to the next generation's gene pool.