Multiple Choice
Suppose Darrell has $4,000 in currency which he deposits in his bank. If the reserve ratio is 25 percent, this will lead to a maximum increase of ________ in M1 throughout all banks.
A) $0
B) $4,000
C) $6,000
D) $12,000
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q43: Assuming all excess reserves are loaned out,
Q44: Which of the following is a bank
Q45: List and explain the three subgroups of
Q46: U.S. banks are required by law to
Q47: If the reserve ratio is 0.9, the
Q50: The formula for an infinite sum is<br>A)
Q51: An example of money is<br>A) a dollar
Q53: Money market mutual funds are hard to
Q151: Define money.
Q294: Which of the following is included in