A One Percentage Point Change in the Required Reserve Ratio

question 166

True/False

A one percentage point change in the required reserve ratio would change the money supply by less than one percent, other things being equal.

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Definitions:

Implicit Memory

A type of memory in which previous experiences aid the performance of a task without conscious awareness of these previous experiences.

Procedural Memory

A type of long-term memory that involves the recall of how to perform tasks such as walking, talking, or riding a bike.

Long-Term Memory

The phase of the memory process that is capable of storing information for long periods of time, from hours to decades.

Short-Term Memory

The capacity for holding a small amount of information in an active, readily available state for a short period of time.