Other Things the Same,if Reserve Requirements Are Increased,the Reserve Ratio

question 35

Multiple Choice

Other things the same,if reserve requirements are increased,the reserve ratio

• A)increases,the money multiplier increases,and the money supply increases.
• B)increases,the money multiplier decreases,and the money supply decreases.
• C)decreases,the money multiplier increases,and the money supply increases.
• D)decreases,the money multiplier decreases,and the money supply increases.

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Definitions:

Employee Retirement Income Security Act

A federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans.

Pension Plans

Financial arrangements that provide retirees with income during retirement, typically funded by employers or the government.

Private Industry

The segment of the economy that is operated by individuals or corporations for profit and is not directly controlled by the government.

Family and Medical Leave Act

A US federal law requiring covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons.