Which of the following will NOT reduce the actual money multiplier?
a) Banks keeping some excess reserves.
b) Consumers keeping money on hand for transactions.
c) An increase in reserve requirements.
d) A certain bank being loaned up.
Ans: d) A certain bank being loaned up.
You might also like to view...
Nominal GDP is $9.6 million dollars, real GDP is $9 million, and velocity is 1.2. The quantity of money is ________ million
A) $10.8 B) $12 C) $7.5 D) $8 E) $11.52
The U.S. oil industry has only a few firms in it, so an economists is likely to describe the industry as
A) a monopoly. B) an oligopoly. C) perfectly competitive. D) monopolistically competitive. E) Both answers C and D can be correct.
Why do individuals hold money when it does not provide the services that, say, a house does?
A) Money is the most liquid asset. B) Money is the only form in which wealth may be held. C) Money increases in value faster than other assets. D) Money is useful in avoiding taxes on certain transactions.
GDP minus final sales gives a measure of the
A. change in business inventories. B. non-residential investment. C. value of intermediate goods. D. GNP.