A Currency Drain Is Cash ________ and Has ________ Effect

question 195

Multiple Choice

A currency drain is cash ________ and has ________ effect on the money multiplier.

• A)draining into the banks;no
• B)draining into the banks;an
• C)held outside the banks;an
• D)held at the Fed;an
• E)held as reserves;no

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent or salaries.

Cost-Benefit Analysis

A financial assessment comparing the costs and benefits of a project or decision to determine its worth.

Utility Analysis

A method used in human resources and organizational psychology to assess the economic value or effectiveness of interventions like training programs, by comparing costs and benefits.

Training Initiative

A strategic approach aimed at developing skills and knowledge within an organization through structured training programs.