Answer: This is an example of HINDSIGHT BIAS.
Explanation: Hindsight bias is defined as the tendency for an individual to calculate too highly the ability to have seen the outcome of an event. It is also known as the knew-it-all-along phenomenon or creeping determinism individuals here feel they already know what will happen after it has happened.
The phrase "life is lived forwards, but understood backwards." is a typical example because for an individual to understand life backwards, it must have already happened. Which is what hindsight bias explains an already occur event. More like predicting the past.
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Answer:
If, the reserve requirement is 10%, then the money supply reserve multiplier is 10 and the money supply should be 10 times reserves. When a reserve requirement is 10%, this also means that a bank can lend 90% of its deposits.
Explanation:
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