18-73 Which of the Following Is an Outcome of a Decrease

question 100

Multiple Choice

18-73 Which of the following is an outcome of a decrease in the reserve requirement ratio?

• A)DIs must hold more reserves against the transaction accounts on their balance sheets.
• B)DIs are able to lend a smaller percentage of their deposits.
• C)Decreased credit availability in the economy.
• D)A multiple contraction in deposits and a decrease in the money supply.
• E)A multiplier effect on the supply of DI deposits and thus,the money supply.

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Definitions:

Selection Strategy

The process and criteria used by an organization to evaluate and choose the most suitable candidates for a position.

Organizational Policies

Internal policies that affect recruitment, such as “promote-from-within” policies.

Compensatory Approach

A strategy used in decision-making that involves offsetting deficiencies in one area with strengths in another, often applied in personnel selection and performance evaluation.

Predictors

Variables or factors that are used to estimate or anticipate future trends, behaviors, or outcomes.