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    Business
  3. Study Set
    Modern Principles of Economics
  4. Exam
    Exam 15: The Federal Reserve System and Open Market Operations
  5. Question
    If Banks Are Holding 100% of Deposits in Reserves, the Money
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If Banks Are Holding 100% of Deposits in Reserves, the Money

Question 6

Question 6

Multiple Choice

If banks are holding 100% of deposits in reserves, the money multiplier will be:


A) 0.
B) 1.
C) 10.
D) 100.

Correct Answer:

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