A larger money multiplier means:
A) the reserve ratio must be smaller.
B) a bank can loan out less.
C) less money is created in the economy.
D) private demand for loans will be higher.
Correct Answer:
Verified
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
Q28: If the reserve ratio was 100 percent,
Q29: The ratio of money created by the
Q31: The money multiplier is approximated as being
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)
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