Multiple Choice
As a result of the Fed's actions during the 2008 financial crisis and banks' lending policies,the money multiplier ________ as a direct result of the ________.
A) fell from about 9 to about 4;surge in banks' desired reserve ratios as they took on less risk
B) rose from about 4 to about 9;surge in banks' desired reserve ratios as they took on less risk
C) fell from about 9 to about 4;low risk experienced by banks because of the FDIC increasing their default coverage amounts
D) rose drastically;consistent decrease in banks' desired reserve ratios as they took on less risk
E) decreased drastically;consistent decrease in banks' desired reserve ratios as they took on less risk
Correct Answer:
Verified
Correct Answer:
Verified
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