The currency deposit ratio,c,is 0.10.The reserve requirement,rr,is 0.08.The excess reserve ratio,e,is 0.05.What is the size of the money multiplier?
A) 4.70
B) 4.78
C) 4.75
D) 4.00
Correct Answer:
Verified
Q11: If $1000 was deposited in a bank
Q12: The banking system in the U.S.is based
Q13: The money multiplier is computed as follows:
A)(c
Q14: The simple deposit multiplier is:
A)1/excess reserves.
B)1/reserve requirement.
C)1/deposit
Q15: The function of money that enables prices
Q17: The function of money that enables money
Q18: The monetary base consists of:
A)currency plus reserves.
B)currency
Q19: Deposits held by commercial banks are insured
Q20: The money supply consists of:
A)currency plus reserves.
B)currency
Q21: Open market sale of government securities results
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