If the reserve ratio was 100 percent, then:
A) no lending would occur using deposits.
B) maximum lending would occur.
C) banks would create money in the economy.
D) banks would lend all of their deposits.
Correct Answer:
Verified
Q23: The amount that a bank is legally
Q24: Commodity-backed money is:
A) any form of money
Q25: The smaller the reserve ratio, the:
A) less
Q26: The amount of cash kept as reserves
Q27: We know how many dollars banks create
Q29: The ratio of money created by the
Q30: A larger money multiplier means:
A) the reserve
Q31: The money multiplier is approximated as being
Q32: Which of the following would not make
Q33: In the United States, the dollar was
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