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    Exam 13: Money and the Banking System
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    Assuming All Excess Reserves Are Loaned Out, If the Reserve
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Assuming All Excess Reserves Are Loaned Out, If the Reserve

Question 87

Question 87

Multiple Choice

Assuming all excess reserves are loaned out, if the reserve ratio is 1 percent, the money multiplier will be equal to


A) 1.
B) 10.
C) 11.
D) 100.

Correct Answer:

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