All of the Following Are True If a Bank in Los

question 20

Multiple Choice

All of the following are true if a bank in Los Angeles borrows federal funds from a bank in San Francisco except

• A)Lending potential goes up for the Los Angeles bank.
• B)Lending potential for the banking system does not change.
• C)Lending potential goes down for the San Francisco bank.
• D)The money multiplier increases for the banking system.

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Definitions:

Nonexperimental Method

A research method where the researcher observes and records behavior without manipulating any variables.

Experimental Control

The process of keeping variables constant or regulating external factors to ensure that observed effects are due to manipulated variables only.

Independent Variable

A manipulated factor in an experiment, chosen to determine its potential effect on a dependent outcome.

Dependent Variable

The outcome factor in a study that changes in response to manipulations of the independent variable.