Statement I: The president appoints the Chairman of the Federal Reserve Board at the beginning of his administration.
Statement II: The deposit expansion multiplier is the reciprocal of the reserve ratio.

Question

Quizplus · Accepted Answer

Statement I is false because the President of the United States does not appoint the Chairman of the Federal Reserve Board specifically at the beginning of his administration; the appointment can occur at any time when the previous chairman's term expires or if there is a vacancy. Statement II is true as the deposit expansion multiplier is indeed the reciprocal of the reserve ratio, which is a fundamental concept in banking that describes how much the money supply can increase based on banks' ability to lend.

Statement I: the President Appoints the Chairman of the Federal