Suppose the currency drain ratio is 33.33 percent and the desired reserve ratio is 10 percent. The money multiplier equals
A) 3.08.
B) 6.67.
C) 3.00.
D) 4.27.
E) 2.50.
Correct Answer:
Verified
Q32: The Fed buys $100 million U.S. government
Q33: Checkable deposits are money because
A)only banks and
Q34: Actual reserves are equal to
A)required reserves plus
Q35: Money market mutual funds
A)are included in M1
Q36: --------------------like a check and--------------------considered money.
A)E-checks work;
Q38: Excess reserves are the
A)same as the required
Q39: If the Fed purchases securities in the
Q40: When we put a price tag on
Q41: If the desired reserve ratio increases, then
A)banks
Q42: A bank has $250 in checking deposits,
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