If the money multiplier is approximated to be 10,it means:
A) banks create 10 dollars in deposits from each original deposit of a dollar.
B) banks create approximately 10 times the amount of cash in the economy.
C) the economy overall has 10 times the amount of deposits as cash that exists.
D) All of these are true.
Correct Answer:
Verified
Q41: The larger is the reserve ratio, the:
A)
Q42: The amount of money available in the
Q56: Liquidity refers to:
A)how easy an asset is
Q57: If the money multiplier is approximated to
Q57: If people decide to hold some of
Q65: A central bank is:
A)the institution ultimately responsible
Q66: Your checking account balance would be counted
Q69: Comparing _ can give us some sense
Q76: A Certificate of Deposit would be counted
Q82: The Federal Reserve System has 12:
A) regional
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents