Solved

The Accompanying Table Gives Data for a Commercial Bank or
\hline

Question 131

Multiple Choice

 (1)   (2)   (3)   Legal Reserve Ratio (%)   Checkable Deposits  Actual Reserves 10$40,000$10,0002040,00010,0002540,00010,0003040,00010,000\begin{array} { | c | c | c | } \hline \text { (1) } & \text { (2) } & \text { (3) } \\\hline \text { Legal Reserve Ratio (\%) } & \text { Checkable Deposits } & \text { Actual Reserves } \\\hline 10 & \$ 40,000 & \$ 10,000 \\\hline 20 & 40,000 & 10,000 \\\hline 25 & 40,000 & 10,000 \\\hline 30 & 40,000 & 10,000 \\\hline\end{array} The accompanying table gives data for a commercial bank or thrift. When the legal reserve ratio is 30 percent, the monetary multiplier is


A) 5.
B) 4.
C) 3.33.
D) 2.5.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions