$\frac { 1 } { \text { Reserve Ratio } }$ is the:
A) fractional reserve multiplier.
B) monetary base multiplier.
C) money multiplier.
D) loan multiplier.

Question

Quizplus · Accepted Answer

The formula for calculating the money multiplier is 1/reserve ratio, which means that the "1/reserve ratio" is the money multiplier. Therefore, the correct answer is (C) money multiplier. Options A, B, and D are incorrect in this context.

1 Reserve Ratio \frac { 1 } { \text { Reserve Ratio } } Reserve Ratio 1​

$\frac { 1 } { \text { Reserve Ratio } }$