The Money-Creating Ability of the Banking System May Be Lowered

question 49

Multiple Choice

The money-creating ability of the banking system may be lowered by:

• A)a decrease in the cash balances that people wish to hold.
• B)a fall in the overall rate of inflation.
• C)an increase in the excess reserves.
• D)an increase in total deposits.
• E)an increase in the reserve requirement.

---

Definitions:

Withdrawal

A psychological or physical retreat from a situation, relationship, or obligation.

Progression

Refers to the act of moving forward or advancing towards a more developed state or stage.

Stimulating Performance

The process of encouraging or motivating employees to improve their work output or to perform at a higher standard.

Job Descriptive Index

A survey instrument that measures employees' job satisfaction with various aspects of their job, including the work itself, supervision, pay, co-workers, and opportunities for promotion.