If Reserves Increase by $29 Million and the Required Reserve

question 26

Multiple Choice

If reserves increase by $29 million and the required reserve ratio is 11%,what is the resulting change in checkable deposits (or the money supply) ,assuming that there are no cash leakages and that banks hold zero excess reserves?

• A) $319 million
• B) $26.3 million
• C) $40 million
• D) $263.6 million

Grasp the foundation and application of reinforcement theory and behavior modification in organizations.

Acknowledge the biases present in attributions and perceptions, including self-serving bias and fundamental attribution error.

Understand the concept of self-fulfilling prophecy and its implications for organizational dynamics and effectiveness.

Understand the core principles and values of group therapy in managed care.

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Definitions:

Relational Proposition

A statement that establishes a relationship between two or more concepts, often used to understand how individuals perceive relationships in the world.

Asch's Studies

A series of experiments that demonstrated the power of conformity in groups, where individuals often agreed with an incorrect answer to match the majority's view.

Conformity

The act of aligning one's attitudes, beliefs, or behaviors to group norms or expectations.

Minority Of One

A situation where a single individual's opinion, behavior, or belief stands in opposition to that of the larger group.