Multiple Choice
Because of the money multiplier, an initial change in excess reserves in the depository institutions system can lead to a multiple change in the:
A) number of institutions in the system.
B) amount of money required to secure a loan.
C) amount of required reserves needed to back a single deposit.
D) amount that can be loaned by all institutions, taken together, in the system.
Correct Answer:

Verified
Correct Answer:
Verified
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