The ________ the Reserve Ratio, the ________ the Simple Deposit

question 62

Multiple Choice

The ________ the reserve ratio, the ________ the simple deposit multiplier.

• A)smaller; smaller
• B)smaller; larger
• C)larger; larger
• D)smaller; greater likelihood there is no change in

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Definitions:

Financial Covenants

Provisions in a loan agreement that limit the borrower's actions in certain ways, ensuring the repayment of the loan.

Executive Compensation

Refers to the total package of benefits, including salary, bonuses, stock options, and other financial rewards, that is provided to executives of a company.

Base Salary

The fixed amount of money a worker receives from their employer before any extra compensations such as bonuses.

Long-term Incentive

Compensation awarded to employees in the form of stock, options, or other performance-linked rewards that vest over a period longer than one year to encourage long-term commitment.