The Sharp Increase in the Excess Reserves Held by the Commercial

question 166

Multiple Choice

The sharp increase in the excess reserves held by the commercial banking system since the second half of 2008 increases the potential for

• A) a sharp contraction in the money supply, which is likely to increase the length and severity of the recession.
• B) a rapid increase in the money supply, potentially leading to inflation.
• C) a gradual increase in the money supply, following the trend of the previous decade.
• D) a reduction in the ability of banks to extend additional loans.

---

Definitions:

Workplace Stress

The response employees have when presented with work demands and pressures that are not matched to their knowledge and abilities, challenging their ability to cope.

Human Relations

The study and management of how individuals and groups interact within an organization.

Sustainable-Wage Jobs

Employment positions that offer wages sufficient to support a decent standard of living for individuals and their families.

Middle Managers

Middle managers are individuals who oversee the day-to-day operations of a company and are responsible for executing the organization's strategic plans, acting as a link between senior management and frontline employees.