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C/D Is the Currency Drain Ratio and R/D Is the Desired

Question 24

Multiple Choice

C/D is the currency drain ratio and R/D is the desired reserve ratio. The money multiplier equals


A) R/DC/D1+R/D \frac{R / D-C / D}{1+R / D} .

B) 1+C/DR/D+C/D \frac{1+C / D}{R / D+C / D} .

C) 1+R/D1+C/D \frac{1+R / D}{1+C / D} .

D) R/D+C/D1+C/D \frac{R / D+C / D}{1+C / D} .

E) 1+R/DR/D+C/D \frac{1+R / D}{R / D+C / D} .

Correct Answer:

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