Increasing the Driving Forces and Reducing the Restraining Forces Tends

question 43

Multiple Choice

Increasing the driving forces and reducing the restraining forces tends to:

• A)reduce the need for change.
• B)unfreeze the status quo.
• C)refreeze the status quo.
• D)decrease environmental stability.
• E)produce environmental equilibrium.

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Definitions:

Loans

Money, goods, or services given to an individual or entity with the expectation of a future repayment, typically with interest.

Reserve Requirement

A central bank regulation that sets the minimum fraction of customer deposits and notes that each commercial bank must hold as reserves rather than lend out.

Deposits

Funds placed into an account at a banking institution for safekeeping and possible interest accrual.

Reserves

Reserves refer to funds or other assets that banks or financial institutions hold to meet unexpected demands or regulatory requirements.