menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Principles of Macroeconomics Study Set 8
  4. Exam
    Exam 16: The Monetary System: Banks and the Money Supply
  5. Question
    If $300 of New Reserves Generates $800 of New Money
Solved

If $300 of New Reserves Generates $800 of New Money

Question 5

Question 5

Multiple Choice

If $300 of new reserves generates $800 of new money in the economy,then the reserve ratio is


A) 2.7 percent.
B) 12.5 percent.
C) 37.5 percent.
D) 40 percent.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: If the reserve ratio is 12.5 percent,then

Q2: If the reserve ratio is 5 percent,then

Q3: A bank's assets equal its liabilities under<br>A)both

Q4: If the reserve ratio is 12.5 percent,then

Q6: If $500 of new reserves generates $1000

Q7: A bank has $500,000 in deposits and

Q8: The reserve requirement is 12 percent.Lucy deposits

Q10: If the central bank in some country

Q11: As the reserve ratio decreases,the money multiplier<br>A)increases.<br>B)does

Q54: In the special case of the 100-percent-reserve

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines