Multiple Choice
Statement I: Time deposits have different reserve requirements than demand deposits.
Statement II: The deposit expansion multiplier is,in reality,quite a bit lower than it would be if we based it solely on the reserve ratio.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Correct Answer:
Verified
Correct Answer:
Verified
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