After the Central Bank Decreases Reserves in the Banking System

question 15

Multiple Choice

After the central bank decreases reserves in the banking system through open-market sales,banks reduce deposits through multiple rounds of calling in loans and losing deposits until the

• A) central bank requires them to stop.
• B) reserve-deposit ratio reaches one-half.
• C) actual reserve-deposit ratio is greater than the desired reserve-deposit ratio.
• D) actual reserve-deposit ratio is equal to the desired reserve-deposit ratio.
• E) actual reserve-deposit ratio is less than the desired reserve-deposit ratio.

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Definitions:

Sense Of Belonging

A person's feeling of being accepted, valued, and connected to a group, community, or society.

Cults

Groups often characterized by a shared religious, philosophical, or spiritual belief system, typically led by a charismatic leader and not conforming to societal norms.

Obedience

The act of following the directives of an authority figure, which can be influenced by varying factors including cultural expectations and personal morality.

Milgram Studies

Groundbreaking experiments by Stanley Milgram focusing on obedience to authority, revealing that individuals can perform acts against their personal conscience under the influence of an authoritative figure.