The Most Important Reason for Having a Legal Reserve Requirement

question 69

Multiple Choice

The most important reason for having a legal reserve requirement is to

• A) ensure bank safety.
• B) prevent banks from reaping tremendous profits as intermediaries.
• C) keep currency in circulation.
• D) control the money supply.
• E) provide enough money to meet everyday needs, such as check cashing and savings withdrawals.

---

Definitions:

Homogenous Teams

Teams made up of members who share similar characteristics, backgrounds, or skills, which can affect the team dynamics.

Cohesiveness

The degree to which members of a group or team are attracted to each other and motivated to stay in the group.

Creativity

The ability to produce original and valuable ideas or solutions.

Five-Factor Model

A model that describes personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.