Use the Following to Answer Questions

question 279

Multiple Choice

Use the following to answer questions:
Charlotte withdraws $8000 from her chequable bank deposit to pay tuition this semester.Assume that the reserve requirement is 20% and that banks do not hold excess reserves.
-(Scenario: Money Supply Changes II) Refer to Scenario: Money Supply Changes II.By how much will the money supply contract as a result of the withdrawal?

• A) $40000
• B) $0
• C) $8000
• D) $32000

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Definitions:

Crisis Management

The identification of a threat to an organization and its stakeholders, and the methods used by the organization to deal with it.

Mattel Company

An American multinational toy manufacturing company known for brands like Barbie, Hot Wheels, and Fisher-Price.

Recall

The process of officially withdrawing a product from the market or correcting defects for a product already sold to consumers, typically because of identified safety issues or quality control problems.

Promotional Message

A communication aimed at informing, persuading, or reminding customers about a product or service.