Other Things Equal, If the Required Reserve Ratio Was Lowered

question 51

Multiple Choice

Other things equal, if the required reserve ratio was lowered,

• A) banks would have to reduce their lending.
• B) the size of the monetary multiplier would increase.
• C) the actual reserves of banks would increase.
• D) the federal funds interest rate would rise.

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Definitions:

Paired Comparison

A technique used in decision making and evaluation to compare each entity in a list with every other entity pairwise.

Performance Appraisal

The process by which a manager or consultant evaluates and documents an employee's performance, typically on an annual basis.

Central Tendency Error

A bias in evaluating others where assessments tend to cluster around a central point, ignoring extreme performances.

Performance Appraisal

A systematic evaluation process in which the work performance of an employee is assessed, typically by their manager, with feedback provided for future improvement.