What Would Be the Result If the Target Reserve Ratio

question 7

Multiple Choice

What would be the result if the target reserve ratio was lowered?

• A)The actual reserves of banks would increase.
• B)The size of the money multiplier would increase.
• C)Banks would be forced to call in loans.
• D)The actual reserves of banks would decrease.
• E)The size of the money multiplier would decrease.

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Definitions:

Double Blind

A study or clinical trial design where neither the participants nor the experimenters know who is receiving a particular treatment, thereby preventing bias.

Experiential Memory

A type of memory that involves recollection of personal experiences, emotions, and the sensory perceptions associated with them.

Episodic Memory

A type of long-term memory that involves the recollection of specific events, situations, and experiences, including the context and emotions associated with them.

Psychological Defenses

Mechanisms employed by the ego to protect the individual from experiencing anxiety or distress, often unconsciously.