If the currency-deposit ratio is 23% and the reserve-deposit ratio is 7%, the size of the money multiplier is
A) 0) 3
B) 2) 0
C) 3) 0
D) 3) 3
E) 4) 1
Correct Answer:
Verified
Q7: The size of the money multiplier
A)cannot be
Q8: Which of the following is NOT an
Q9: Banks have an incentive to minimize their
Q10: Which of the following occurred in the
Q11: The formula for the money multiplier (mm)
Q13: While the Fed can influence the money
Q14: Other things remaining the same, the smaller
Q15: The reserve-deposit ratio is likely to increase
Q16: The stock of high-powered money is increased
Q17: Banks tend to hold some excess reserves
A)for
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