Which of the following will limit the expansion of the money supply following a new deposit?
A) the bank's keeping no excess reserves
B) a strong demand for new loans
C) a redepositing of all loan proceeds
D) a strong demand for holding currency outside of commercial banks
Correct Answer:
Verified
Q71: The money multiplier is equal to
A)the reserve
Q72: The more excess reserves banks decide to
Q73: The actual multiplier is often less than
Q74: Currently,there are $10 million in excess reserves
Q75: The larger the desired reserve ratio,
A)the greater
Q77: With a desired reserve ratio of 10
Q78: The actual change in the money supply
Q79: The actual change in the money supply
Q80: When the desired reserve ratio is 20
Q490: Asymmetric information before a transaction takes place
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