Which of the Following Statements Is Correct

question 235

Multiple Choice

Which of the following statements is correct?

• A) In the special case of 100-percent-reserve banking,the reserve ratio is 1,the money multiplier is 2,and banks create money.
• B) In the special case of 100-percent-reserve banking,the reserve ratio is 1,the money multiplier is 1,and banks do not create money.
• C) When the reserve ratio is 0.5,then the money multiplier is 1 and banks do not create money.
• D) When the reserve ratio is 0.125,then the money multiplier is 8,and each bank loans $8 for every $1 that it accept in deposits.

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Definitions:

Whistleblowing

The act of exposing wrongful, unethical, or illegal activities within an organization to those in authority or the general public.

Goodwill

An intangible asset reflecting the value of a business above its tangible assets and liabilities, often associated with its brand, customer base, and reputation.

Sense of Ownership

The psychological state or feeling whereby an individual identifies with or feels a possessive connection to an object or property.

Sense of Satisfaction

The feeling of contentment or fulfillment that comes from achieving or accomplishing something.