If Reserve Requirements Are Increased

question 22

Multiple Choice

If reserve requirements are increased:

• A)the reserve ratio will increase, the money multiplier will increase and the money supply will increase
• B)the reserve ratio will decrease, the money multiplier will decrease and the money supply will decrease
• C)the reserve ratio will decrease, the money multiplier will increase and the money supply will increase
• D)the reserve ratio will increase, the money multiplier will decrease and the money supply will decrease

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Definitions:

Confidence

The feeling or belief in one's abilities, qualities, and judgment.

Situational Leadership Model

A leadership theory proposing that no single leadership style is best. Instead, it depends on the situation at hand and involves adjusting leadership styles based on the maturity level of the followers.

Leadership Style

The manner in which a leader guides, directs, or influences a group, which can vary greatly from authoritarian to democratic or laissez-faire approaches.

Fiedler's Theory

A contingency leadership model proposed by Fred Fiedler that suggests the effectiveness of a leader is determined by the leader's style of interaction with the group and the favorableness of the situation.