Multiple Choice
If the monetary base is denoted by B, rr is the ratio of reserves to deposits, and cr is the ratio of currency to deposits, then the money supply is equal to ______ divided by ______ multiplied by B.
A) (rr + 1) ; (rr + cr)
B) (cr + 1) ; (cr + rr)
C) (rr + cr) ; (rr + 1)
D) (rr + cr) ; (cr + 1)
Correct Answer:
Verified
Correct Answer:
Verified
Q37: To increase the money supply, the Federal
Q38: The money supply will increase if the:<br>A)
Q39: Assume that the monetary base (B)
Q40: As the U.S. economy approached the millennium,
Q41: If many banks fail, this is likely
Q43: If currency held by the public equals
Q44: If the ratio of reserves to deposits
Q45: To make a trade in a barter
Q46: In prisoner of war camps during World
Q47: Quantitative easing is most closely akin to:<br>A)