Which of the Following Assumptions Made in Deriving the Simple

question 34

Multiple Choice

Which of the following assumptions made in deriving the simple deposit multiplier is unrealistic?

• A)The Fed sets the required reserve ratio.
• B)The Fed is able to affect the level of reserves in the banking system.
• C)Banks loan out all of their excess reserves.
• D)The simple deposit multiplier is equal to 1 divided by the required reserve ratio.

Understand the circumstances under which an employer or principal can be held liable for an agent's or employee's actions.

Understand the rights and liabilities that arise between agents and principals in various scenarios, including undisclosed principals and contract exclusions.

Recognize the implications of terminating agency relationships, including how authority can be revoked or renounced.

Understand the concept of vicarious liability and its implications for principals and agents.

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Definitions:

Trochophore Larva

A larval form found in mollusks and many polychaetes.

Petechiae

Tiny, round spots that appear on the skin due to bleeding under the surface, often indicative of a medical condition.

Dark-Skinned Individuals

Persons with a higher concentration of melanin in the skin, which can affect the clinical diagnosis of conditions like anemia or petechiae.

Oral Mucosa

The mucous membrane lining the inside of the mouth, which can be a site of absorption for certain medications or a location for various diseases.