Multiple Choice
Which of the following would cause the actual deposit expansion multiplier to be less than its potential?
A) The general public holding of funds in the form of currency rather than bank deposits
B) The holding of excess reserves by commercial banks
C) The general public holding of funds in the form of coins rather than bills
D) Both a and b
Correct Answer:

Verified
Correct Answer:
Verified
Q48: Other things constant, if the Fed decreased
Q49: You withdraw $100 from your checking account.
Q50: When the Fed sells Treasury Bonds on
Q51: Does the Federal Reserve operate like an
Q52: A reserve requirement of 5 percent implies
Q54: Regional Bank is subject to a 10
Q55: When a banker accepts a deposit of
Q56: When the Fed lowers the discount rate,
Q57: Marquis decides to bank with First National
Q58: Why did the monetary base increase rapidly