The money multiplier is approximated as being equal to:
A) one divided by the reserve ratio.
B) one divided by the federal funds.
C) demand deposits multiplied by the interest rate.
D) demand deposits multiplied by the reserve ratio.
Correct Answer:
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Q26: The amount of cash kept as reserves
Q27: We know how many dollars banks create
Q28: If the reserve ratio was 100 percent,
Q29: The ratio of money created by the
Q30: A larger money multiplier means:
A) the reserve
Q32: Which of the following would not make
Q33: In the United States, the dollar was
Q34: Funds held in bank accounts that can
Q35: Banks create money in the economy by:
A)
Q36: Under fractional reserve banking:
A) banks only need
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