Which of the following would reduce the money multiplier?

Name: Which of the following would reduce the money multiplier?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cash drains from banks reduce the amount of reserves available to support additional lending, thereby reducing the money multiplier. This is because when people withdraw cash from banks, the banks have fewer reserves to lend out, which decreases the potential for creating new deposits through the lending process.

Which of the Following Would Reduce the Money Multiplier