If Actual Reserves in the Banking System Are $50,000, Excess

question 102

Multiple Choice

If actual reserves in the banking system are $50,000, excess reserves are $5,000, and demand deposits are $225,000, then the money multiplier:

• A)is 10.
• B)is 5.
• C)is 4.
• D)cannot be determined from this information.

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Definitions:

Institutional Prejudice

Prejudice that is caused by policies in the workplace that are not intentionally set to exclude members of specific groups or to treat them differently, but which have that effect anyway.

Groupthink

A psychological phenomenon occurring within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Discriminatory Effect

The negative impact of practices or policies that, intentionally or not, result in unfair treatment of certain groups.

Emotional Causes

The underlying emotional factors or triggers that lead to specific behaviors or psychological states.