If the Required Reserve Ratio (RRR)is 10 Percent and the Fed

question 27

Multiple Choice

If the required reserve ratio (RRR) is 10 percent and the Fed sells a $5,000 bond to an individual who pays for it with a check,the money supply will

• A) not change
• B) decrease by $4,500
• C) increase by $4,500
• D) decrease by $5,000
• E) increase by $5,000

---

Definitions:

BATNA/MLATNA

Best Alternative To a Negotiated Agreement / Most Likely Alternative To a Negotiated Agreement; concepts in negotiation that define the most advantageous alternative action a party can take if negotiations fail.

Bargain

To negotiate the terms of an agreement or contract, often in the context of labor unions negotiating employment conditions with employers.

Bad Faith Bargaining

The practice of negotiating without the intention to reach an agreement, often violating trust and fairness in collective bargaining processes.

Industrywide Bargaining

Negotiation processes that occur at the industry level, involving multiple employers and a labor union, to set standard wages and conditions across an entire industry.