Which of the Following Is Not a Consequence of the Fed

question 10

Multiple Choice

Which of the following is not a consequence of the Fed changing the reserve requirement?

• A)Changes in the ratio are easily incorporated into banks' routine management.
• B)Decreasing the ratio will increase excess reserves.
• C)Increasing the ratio will decrease the amount of reserves banks have to loan.
• D)Changes in the ratio effectively places a tax on banks' deposit taking and lending activities.

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Definitions:

Regulating Behavior

The act of controlling or directing actions or conduct according to certain standards or rules.

Followership Theory

A conceptual framework focusing on the behaviors, attitudes, and roles of followers in the leadership process and their impact on organizational outcomes.

Alienated Followers

Individuals within a group or organization who feel estranged or disconnected from leadership and the collective goals, often due to perceived neglect or misunderstanding.

Critical Discontent

A state of dissatisfaction often driven by critical thinking or analysis, leading individuals to question or challenge existing conditions or norms.