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:

Conversion Disorder

A mental condition whereby psychological stress or conflict is expressed through physical symptoms that are not attributable to any medical cause.

Relaxation Training

A therapeutic technique aimed at teaching individuals how to effectively reduce stress and tension in the body.

Behavioral Medicine

An interdisciplinary field that combines both medical and psychological approaches to address and treat physical health problems.

Biofeedback Training

A technique that teaches individuals how to control physiological functions through monitoring and feedback from instruments.