In December 1999 People Feared That There Might Be Computer

question 87

Multiple Choice

In December 1999 people feared that there might be computer problems at banks as the century changed.Consequently,people wanted to hold relatively more in currency and relatively less in deposits.In anticipation banks raised their reserve ratios to have enough cash on hand to meet depositors' demands.These actions by the public

• A)would increase the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have sold bonds.
• B)would increase the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have bought bonds.
• C)would reduce the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have sold bonds.
• D)would reduce the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have bought bonds.

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Definitions:

Vitality

The strength to live; a basic requirement for successful leaders who, through personal energy and stamina, breathe life into their visions and followers.

Stability

The state of being steady, consistent, or unchanging over time.

Psychological Climate

The collective perceptions of employees about their work environment, which can influence motivation, job satisfaction, and performance.

Employment Patterns

The trends and shifts in how employment is structured in society, including job types, industry demands, and workforce distribution.