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If M = the Quantity of Money, M the Money

Question 89

Multiple Choice

If M = the quantity of money, m the money multiplier, MB the Monetary Base, C = Currency, D = Deposits, R = Reserves, RR equals required reserves, rD = the required reserve rate and ER = Excess reserves, then ER/D would equal the:


A) Amount of excess reserves
B) Amount of reserves
C) Excess reserve to deposit ratio
D) Money multiplier

Correct Answer:

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