If a Bank Uses $100 of Excess Reserves to Make

question 252

Multiple Choice

If a bank uses $100 of excess reserves to make a new loan when the reserve ratio is 20 percent, this action by itself initially makes the money supply

• A)and wealth increase by $100.
• B)and wealth decrease by $100.
• C)increase by $100 while wealth does not change.
• D)decrease by $100 while wealth decreases by $100.

Know the fundamental legal and ethical principles guiding employment equity and diversity management, including human rights legislation.

Understand the principles and legislation behind pay equity including the misconception that pay equity equates to equal pay for identical work.

Recognize the function and limitations of the Canadian Human Rights Commission (CHRC) within the context of human rights and discrimination complaints.

Discriminate between the scopes of federal and provincial human rights laws and their application in different industries.

---

Definitions:

Environmental Uncertainty

A lack of complete information about the environment.

Organisational Design

Organisational design is the process of shaping an organization's structure and roles to align with its objectives, strategy, and environment, enhancing efficiency and effectiveness.

Strategy

Strategy refers to a plan of action designed to achieve a long-term or overall aim.

Chain of Command

The formal line of authority within an organization, showing how orders flow from top management down to lower levels of employees.