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:

Saltation

A process in which wind-blown or water-borne particles are lifted briefly into the air or water and then settle back down, causing a hopping or skipping motion.

Hydrologic Cycle

The hydrologic cycle describes the continuous movement of water on, above, and below the surface of the Earth, through processes such as evaporation, condensation, precipitation, and infiltration.

Groundwater

Water held underground in the soil or in pores and crevices in rock.

Fractures

Breaks in rock or mineral without the movement parallel to the surface of the break, often a result of stress exceeding the strength of the material.