When the Fed Issues Currency

question 194

Multiple Choice

When the Fed issues currency

• A)this increases our money supply only if it replaces old,worn-out currency.
• B)this increases our money supply only if it is used to accommodate the public's desire to hold more currency.
• C)this increases our money supply either if it replaces old,worn currency,or if it is used to accommodate the public's desire to hold more currency.
• D)this does not increase our money supply.

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Definitions:

S Factor

Also known as the "specific factor," it refers to specific mental abilities as opposed to general intelligence in psychometric testing.

Primary Mental Abilities

According to Thurstone, seven relatively distinct capabilities that singly or in combination are involved in all intellectual activities.

Charles Spearman

A British psychologist who contributed to the development of factor analysis and the concept of general intelligence, represented as the "g" factor.

Louis Thurstone

An influential psychologist best known for his contributions to psychometrics and the theory of multiple intelligences.