Assuming all excess reserves are loaned out, if the reserve ratio is 3.33 percent, the money multiplier will be equal to
A) 0.67.
B) 3.33.
C) 6.67.
D) 30.

Name: Assuming all excess reserves are loaned out, if the reserve ratio is 3.33 percent, the money multiplier will be equal to A) 0.67. B) 3.33. C) 6.67. D) 30.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

The money multiplier is calculated as the reciprocal of the reserve ratio. If the reserve ratio is 3.33 percent, the money multiplier is 1 / 0.0333, which equals approximately 30.

Assuming All Excess Reserves Are Loaned Out, If the Reserve