Multiple Choice
When part of a bank loan does not return to the banking system but rather remains outside the banking system as currency,then the money multiplier ________ in size and the amount of money created by an open market operation ________.
A) increases;decreases
B) does not change;increases
C) decreases;decreases
D) increases;increases
E) decreases;does not change
Correct Answer:
Verified
Correct Answer:
Verified
Q312: An increase in the currency drain ratio<br>A)increases
Q313: The U.S.dollar is called<br>A)fiat money because the
Q314: Checks are not money because they<br>A)are just
Q315: Suppose the Fed buys $1 million of
Q316: The goal of a commercial bank is
Q318: The desired reserve ratio is 3 percent.Robert
Q319: Decisions of _ determine the magnitude of
Q320: In performing which of its primary functions
Q321: A bank has $250 in checking deposits,$1,000
Q559: Are checks money?