The larger the desired reserve ratio,
A) the greater the increase in the money supply for an increase in bank deposits.
B) the more apt there will be currency drains.
C) the smaller the maximum money multiplier.
D) the more difficult for the Bank of Canada to control the money supply.
Correct Answer:
Verified
Q70: Which of the following actions has no
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
Q76: Which of the following will limit the
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
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