If the Fed Lowers the Required Reserve Ratio,__________ in the Banking

question 147

Multiple Choice

If the Fed lowers the required reserve ratio,__________ in the banking system will remain unchanged but __________ will rise.This will (likely) lead to an increase in new loans and checkable deposits and a(n) __________ in the money supply.

• A) excess reserves; vault cash; increase
• B) reserves; vault cash; decrease
• C) reserves; excess reserves; increase
• D) reserves; required reserves; increase
• E) none of the above

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Definitions:

Binocular Disparity

The difference in images between the two eyes, which allows for depth perception.

Texture Gradients

A visual cue in perception where objects closer to the viewer show more detailed texture, aiding in depth perception.

Interposition

A visual cue to depth that occurs when one object partially blocks another, indicating that the blocking object is closer.

Motion Parallax

A depth cue based on the fact that, as an observer moves, the retinal images of nearby objects move more rapidly than do the retinal images of objects farther away.