In a fractional reserve banking system with no currency where res is the ratio of reserves to deposits,the money multiplier is
A) 1 - res.
B) 1 + res.
C) 1/res.
D) res2
Correct Answer:
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Q6: The currency-deposit ratio is determined by
A)banks.
B)the public.
C)the
Q7: Suppose there was a banking crisis.The money
Q8: Assume that the currency-deposit ratio is 0.2
Q9: Assume that the reserve-deposit ratio is 0.4.The
Q10: Which of the following are depository institutions?
A)The
Q12: Vault cash is equal to $2 million,deposits
Q13: Banks hold some deposits on reserve at
Q14: Suppose the Federal Reserve wanted to reduce
Q15: The monetary base is defined as
A)bank reserves
Q16: The money supply is $6 million,currency held
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