The smaller the reserve ratio, the:
A) less a bank can loan out.
B) smaller the money multiplier.
C) more the government is able to borrow.
D) more money is created in the economy.
Correct Answer:
Verified
Q20: Which of the following is a good
Q21: If there were no fractional reserve banking:
A)
Q22: Any amount that a bank chooses to
Q23: The amount that a bank is legally
Q24: Commodity-backed money is:
A) any form of money
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
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