If the Desired Reserve Ratio Is One-Third, Currency in Circulation

question 49

Multiple Choice

If the desired reserve ratio is one-third, currency in circulation is $300 billion, and chequable deposits are $900 billion, then the money multiplier is approximately ________.

• A) 2.5
• B) 2.8
• C) 2.0
• D) 0.67

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Definitions:

Situational Factors

External influences that can affect an individual's behavior or performance, such as environmental conditions or social circumstances.

Dispositional Factors

Internal factors such as beliefs, attitudes, personality traits, and genetics that influence behavior.

Zimbardo

Refers to Philip Zimbardo, a psychologist known for conducting the Stanford prison experiment that explored the effects of perceived power and authority on behavior.

Bystander Intervention

The phenomenon where individuals witnessing an emergency or crime are more or less likely to assist the victim based on the presence of other witnesses.