The simple deposit multiplier is the ratio of the amount of
A) new reserves created by the banks to the amount of deposits.
B) new reserves created by the banks to the amount of loans.
C) deposits created by the banks to the amount of new reserves.
D) deposits created by the banks.
E) new economic activity to the amount of new reserves.
Correct Answer:
Verified
Q141: If banks do not loan out all
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Q143: The _ the reserve ratio, the _
Q144: Which of the following is a true
Q145: Suppose the desired reserve ratio is Rd.Then,
A)desired
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Q148: With a desired reserve ratio of 20
Q149: If the desired reserve ratio is Rd,
Q150: Consider the following T-account for National City
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