In December 1999 People Feared That There Might Be Computer

question 87

Multiple Choice

In December 1999 people feared that there might be computer problems at banks as the century changed.Consequently,people wanted to hold relatively more in currency and relatively less in deposits.In anticipation banks raised their reserve ratios to have enough cash on hand to meet depositors' demands.These actions by the public

• A)would increase the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have sold bonds.
• B)would increase the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have bought bonds.
• C)would reduce the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have sold bonds.
• D)would reduce the multiplier.If the Fed wanted to offset the effect of this on the size of the money supply,it could have bought bonds.

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Definitions:

Cognitive Egocentrism

A cognitive bias involving difficulty in understanding or acknowledging the perspectives and thoughts of others, often seen in children and adolescents.

Preschoolers Development

Encompasses the physical, cognitive, emotional, and social growth that occurs in children approximately ages 3 to 5 years old.

Accepting Sibling

A brother or sister who shows acceptance and support towards their siblings regardless of the situation or context.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed or sensed, a cognitive development milestone typically achieved in infancy.