A Change in the Reserve Ratio Will Affect Both the Amount

question 150

True/False

A change in the reserve ratio will affect both the amount of the banking system's excess reserves and the multiple by which the system
can lend based on excess reserves.

---

Definitions:

Automaticity

The ability to perform tasks without occupying the mind with the low-level details, typically resulting from learning, repetition, and practice.

Little Effort

A minimal amount of work or exertion required to achieve something.

Process Information

The act of taking in, interpreting, and making sense of data or stimuli from the environment.

Information-Processing

A cognitive approach that compares the mind to a computer, focusing on how people encode, store, and retrieve information.