According to Leon Festinger, Group Membership

question 64

Multiple Choice

According to Leon Festinger, group membership

• A)reduces the actor-observer bias.
• B)satisfies our need for social comparison.
• C)encourages passive compliance in our interactions.
• D)fulfills our desire to influence and control others.

---

Definitions:

Federal Funds Rate

The interest rate banks and other depository institutions charge one another on overnight loans made out of their excess reserves.

Borrowed Reserves

Funds that commercial banks borrow from the central bank to meet reserve requirements, often indicative of a tight monetary policy.

Fed

The Federal Reserve System, which is the central bank of the United States responsible for monetary policy.

Money Supply

represents the total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in bank accounts.