Assume that the currency-deposit ratio is 0.3 and the reserve-deposit ratio is 0.2.What is the money multiplier?
A) 1) 5
B) 2) 0
C) 2) 6
D) 5) 0
Correct Answer:
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Q2: Fractional reserve banking is the system that
A)allows
Q3: High-powered money consists of
A)bank reserves plus currency
Q4: Vault cash is equal to $2 million,deposits
Q5: The money supply is $10 million,currency held
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
Q11: In a fractional reserve banking system with
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