Multiple Choice
If the reserve ratio is 8 percent, then an additional $1,000 of reserves can increase the money supply by as much as
A) $6,400.
B) $8,000.
C) $12,500.
D) $20,000.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q15: If the Fed decreases reserve requirements, the
Q32: Economists use the term "money" to refer
Q34: The money supply decreases if<br>A)households decide to
Q66: Which of the following is included in
Q68: Small time deposits are included in<br>A)M1 but
Q88: In a fractional-reserve banking system,a decrease in
Q189: If the Fed raised the reserve requirement,
Q277: If the reserve requirement is 5 percent,
Q279: Consider five individuals with different occupations.
Q280: Liquidity refers to<br>A)the ease with which an