Multiple Choice
If we assume m to be equal to the maximum amount of dollar that can be created from a single dollar of excess reserves and R to be equal to the desired reserve ratio, then we can say that for the banking system:
A) m = R - 1.
B) R = m/1.
C) R = m - 1.
D) m = 1/R.
Correct Answer:
Verified
Correct Answer:
Verified
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