If the Fed Buys a $100,000 Government Security from a Bank

question 312

Multiple Choice

If the Fed buys a $100,000 government security from a bank when the desired reserve ratio is 20 percent and the currency drain is 5 percent, the bank can loan a maximum of

• A) $75,000.
• B) $80,000.
• C) $100,000.
• D) $95,000.
• E) $85,000.

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Definitions:

Trait Studies

Research focused on identifying and analyzing specific characteristics that distinguish leaders from non-leaders or that contribute to effectiveness in leadership roles.

Managerial Effectiveness

The degree to which a manager achieves the desired outcomes and targets through efficient resource utilization.

Mediating Processes

Intermediate mechanisms through which input factors transform into outcomes, often used in the context of psychological and organizational studies.

Achievement Orientation

A focus on setting and meeting high standards and achievements, whether personal or professional.