Solved

If the Required Ratio of Reserves to Deposits Is R,then

Question 62

Multiple Choice

If the required ratio of reserves to deposits is r,then for every $1 in excess reserves,the banking system can potentially increase the money supply by


A) r.
B) 1 + r.
C) 1/r.
D) 1/(1 - r) .
E) (1 - r) /r.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents