The Multiplying Capacity of Primary Deposits Is Reduced If

question 24

Multiple Choice

The multiplying capacity of primary deposits is reduced if:

• A)no additional cash is withdrawn for hand-to-hand circulation
• B)businesses increase their petty cash funds in U.S.banks
• C)foreign countries deposit funds in U.S.banks
• D)the U.S.Treasury deposits funds

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Definitions:

Mature Groups

Teams or groups that have developed advanced levels of communication, structures, and processes to achieve high performance.

Groupthink

Within a team, the psychological inclination towards agreement or uniformity fosters a scenario where irrational or suboptimal decisions are made.

Group Development

The process through which a group evolves over time, typically moving through stages of forming, storming, norming, performing, and adjourning.

Roles

The functions or parts played by individuals in a particular social or working situation.