Which of the following statements is false?
A) Changes in the reserve requirement change the amount banks have to deposit with the central bank.
B) Changes in the reserve requirement change the money multiplier.
C) Changes in the reserve requirement change the money supply.
D) Changes in the reserve requirement have no impact on the money supply.
Correct Answer:
Verified
Q6: The monetary base is equal to:
A) C
Q7: Which of the following is not included
Q8: The money multiplier is equal to:
A) Cp
Q9: If the reserve requirement is 20 percent,
Q10: If the banking system has a required
Q12: The rate of interest charged by the
Q13: The interest rate the central bank charges
Q14: An increase in the discount rate:
A) reduces
Q15: A decrease in the discount rate:
A) increases
Q16: Which of the following refers to the
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