A Change in the Reserve Requirement Causes a Change in All

question 117

Multiple Choice

A change in the reserve requirement causes a change in all of the following except

• A)The money multiplier.
• B)The lending capacity of the banking system.
• C)Excess reserves.
• D)Pretax income.

---

Definitions:

Slave Trade

The historical practice of trading slaves, involving the procurement, transport, and sale of human beings as property.

Mental Disease

A broad category of conditions that affect mood, thinking, and behavior.

Delusions of Grandeur

A false belief in one's own superiority, greatness, or omnipotence, often observed in psychiatric conditions such as bipolar disorder and schizophrenia.

Four Ds

A guideline in psychology used to define abnormal behavior through four criteria: deviance, distress, dysfunction, and danger.