The Multiplying Capacity of Primary Deposits Is Reduced If

question 24

Multiple Choice

The multiplying capacity of primary deposits is reduced if:

• A)no additional cash is withdrawn for hand-to-hand circulation
• B)businesses increase their petty cash funds in U.S.banks
• C)foreign countries deposit funds in U.S.banks
• D)the U.S.Treasury deposits funds

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Definitions:

Multifactor Productivity

An efficiency measure that evaluates the output produced relative to a combination of input factors like labor, materials, and capital.

Inputs

Resources used in the production process, including raw materials, labor, and capital.

Outputs

The final products, services, or results generated by a system, process, or project.

Foundry

A workshop or factory for casting metal, where molten metal is poured into molds to create various shapes.