-Refer to the Above Information

question 143

Multiple Choice

-Refer to the above information.If the desired reserve ratio falls from 25 percent to 10 percent,excess reserves of this single bank will:

• A) rise by $6,000 and the monetary multiplier will increase from 4 to 10.
• B) rise by $60,000 and the monetary multiplier will increase from 4 to 10.
• C) fall by $6,000 and the monetary multiplier will decline from 30 to 10.
• D) fall by $2,000 and the monetary multiplier will decline from 10 to 4.

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Definitions:

State-dependent Memory

The occurrence where data acquired while in a specific emotional condition (for example, joy or sorrow) is more readily remembered when one is again in that emotional state.

Tranquilizing Drug

Medications used to reduce tension or anxiety, functioning typically by depressing the central nervous system.

Test Anxiety

The extreme stress, anxiety, and discomfort some individuals feel before or during examinations, negatively affecting performance.

Method of Loci

A mnemonic strategy of associating information to be remembered with specific physical locations, enhancing the recall of the information by visualizing moving through those places.