Which of the Following Is an Outcome of an Increase

question 117

Multiple Choice

Which of the following is an outcome of an increase in the reserve requirement ratio?

• A)DIs may hold fewer reserves against their transaction accounts.
• B)DIs are able to lend out a greater percentage of their deposits.
• C)Increased credit availability in the economy.
• D)DIs are only able to lend a smaller percentage of their deposits than before.

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Definitions:

Process of Reasoning

The cognitive sequence of considering various related aspects and arriving at a conclusion or judgment.

Appeal to Ignorance

A logical fallacy in which a claim is accepted as true or false based on the absence of evidence to the contrary.

Cognition

The act of comprehension and learning achieved through mental engagement, life experiences, and sensory input.

Out of Character

Behavior that is not typical for a person, deviating from how they usually act or are expected to behave.