If the Desired Reserve Ratio Is 25 Percent, the Simple

question 15

Multiple Choice

If the desired reserve ratio is 25 percent, the simple deposit multiplier is ________.

• A) 5.0
• B) 2.5
• C) 4.0
• D) 10.0

---

Definitions:

Behavioral Economics

A branch of economics that uses social and psychological factors in understanding decision making. It is particularly concerned with the limits of rationality in those decisions.

Sociology

The study of social behavior, society, patterns of social relationships, social interaction, and culture.

Psychology

the scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Threats

Potential sources of harm or adverse effects to something or someone.