A reserve requirement of 10% implies a money multiplier of 10 and a reserve requirement of 15% implies a money multiplier of 15.

Name: A reserve requirement of 10% implies a money multiplier of 10 and a reserve requirement of 15% implies a money multiplier of 15.
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Quizplus · Accepted Answer

The formula for money multiplier is 1/reserve requirement. Therefore, a reserve requirement of 10% would result in a money multiplier of 1/0.1 = 10, but a reserve requirement of 15% would result in a money multiplier of 1/0.15 ≈ 6.67.

A Reserve Requirement of 10% Implies a Money Multiplier of 10