One of the Most Dangerous Performance Evaluation Errors Is __________

question 160

Multiple Choice

One of the most dangerous performance evaluation errors is __________, which occurs when a rater places an employee into a class or category based on one or a few traits or characteristics.

• A) homogeneity
• B) the halo effect
• C) stereotyping
• D) diversion
• E) leniency

---

Definitions:

Money Multiplier

The ratio of the amount of deposits created by banks to the amount of the central bank's monetary base that has been injected into the economy.

100-percent-reserve Banking

A banking system in which banks keep the full amount of their depositors' funds in reserve, meaning they do not loan out any of the deposits but instead hold 100% of deposited money.

Money Supply

The total amount of currency and monetary assets within an economy at a specific time.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits, used to control the money supply.