The smaller the reserve ratio the:
A) less a bank can loan out.
B) smaller is the money multiplier.
C) less money is created in the economy.
D) greater the money is created in the economy.
Correct Answer:
Verified
Q48: If the reserve ratio is 5 percent,
Q49: If people decide to hold some of
Q50: Hard money:
A) is the least narrow definition
Q51: The Fed classifies different types of money
Q52: The definition of M1 includes:
A) cash and
Q53: Liquidity refers to how:
A) easy an asset
Q54: If the reserve ratio is 20 percent,
Q55: The money supply is the amount of
Q57: If the money multiplier is approximated to
Q58: The narrowest definition of money is:
A) hard
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