If Banks Have Zero Excess Reserves,then the Net Effect of Any

question 71

Multiple Choice

If banks have zero excess reserves,then the net effect of any check writing and depositing on the money supply is

• A)positive since the required reserve ratio is less than one.
• B)positive as long as no one takes cash out of the system.
• C)zero,since the gain in excess reserves at one bank are exactly offset by a reduction in excess reserves at another bank.
• D)negative since one bank loses more in total reserves than the other bank gets in excess reserves.

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Definitions:

NLRB

The governmental body responsible for enforcing U.S. labor laws in relation to collective bargaining and unfair labor practices, facilitating equitable labor relations.

Union Membership

Being a part of an organization that represents workers' interests in negotiations with employers over issues like wages, benefits, and working conditions.

Economy Structure

The organization of economic activity in a society, including the allocation and distribution of resources, goods, and services.

Null Hypothesis

A hypothesis that states there is no statistical significance between the specified sets of observations, implying no effect or no difference as a result of the experimental treatment.