Multiple Choice
Which of the following is the simple money multiplier equal to?
A) 1 divided by the dollar amount of desired reserves
B) the dollar amount of total reserves divided by the dollar amount of excess reserves
C) the dollar amount of excess reserves divided by the dollar amount of total reserves
D) 1 divided by the percentage of deposits that must be held by a bank in the form of reserves
Correct Answer:

Verified
Correct Answer:
Verified
Q87: What difference makes up a bank's profit?
Q88: Suppose the First National Bank acquires $500,000
Q89: Suppose at the end of the business
Q90: How is M2 defined? <br>A) as M1 plus
Q91: Narrowly defined, what is the primary composition
Q93: Which of the following would likely increase
Q94: Suppose a bank has $8,000 in chequable
Q95: Suppose the desired reserve ratio is 20
Q96: What comprises the money supply as it
Q97: In what form can bank reserves be