The demand deposit multiplier is equal to the
A) reciprocal of the reserve requirement ratio.
B) reciprocal of the discount rate.
C) inverse of the reserve requirement ratio.
D) inverse of the discount rate.
Correct Answer:
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Q21: If the required reserve ratio was 1,
Q22: If the ratio of net worth to
Q23: If the required reserve ratio is .5,
Q24: When banks make new loans, the effect
Q25: If a bank buys securities, its
A) net
Q27: An initial deficiency in reserves of $20
Q28: The required reserve ratio is 10 percent,
Q29: If the required reserve ratio is decreased
Q30: If original excess reserves are $10 million,
Q31: Assume that there are no excess reserves,
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