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If M Equals the Maximum Number of New Dollars That R=m/1R = m / 1

Question 282

Multiple Choice

If m equals the maximum number of new dollars that can be created for a single dollar of excess reserves and R equals the required reserve ratio, then for the banking system,


A) m = R ? 1.
B) R=m/1R = m / 1
C) R = m ? 1.
D) m=1/Rm = 1 / R

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