All of the Following Statements with Respect to the Principles

question 55

Multiple Choice

All of the following statements with respect to the principles of operation of automatic transmissions are true except:

• A) A planetary gear set is a device with several gears assembled in a compact design.
• B) Planetary gears are held together in a sun gear.
• C) If an individual component of a planetary gear set is prevented from turning, it will create one of three gear ratios.
• D) By combining two or more planetary gear sets, we can create the needed gear ratios, or speeds.

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Definitions:

Discount Rate

The interest rate charged by central banks on loans they provide to commercial banks or financial institutions.

Money Supply

The entire amount of cash and cash equivalents present in an economy at a designated time, including money in the form of coins, notes, and funds held in checking and savings accounts.

Money Multiplier

A factor that quantifies the amount of additional money that can be created in a bank's lending process for a given amount of reserves.

Excess Reserves

Excess reserves are the capital reserves held by a bank or financial institution in excess of what is required by regulators, central bank, or other financial authority.