The multiple by which total deposits can increase for every dollar increase in ________ is the money multiplier.
A. loans
B. liabilities
C. reserves
D. M1
Answer: C
You might also like to view...
The commercial banking system borrows from the Federal Reserve Banks. As a result, the checkable deposits ________.
A. and reserves of commercial banks are both unchanged B. of commercial banks are unchanged, but their reserves increase C. of commercial banks are unchanged, but their reserves decrease D. and reserves of commercial banks both decrease
As savings grow in an economy, economic growth rises
a. True b. False Indicate whether the statement is true or false
If tastes for a good increased and the price of a substitute good increased at the same time, as a result: a. prices would rise
b. prices would fall. c. larger quantities to be exchanged. d. Both a. and c. would occur.
At a given level of wheat output, one more unit of labor would produce 10 extra bushels, and one more unit of seed would produce 30 extra bushels. A unit of labor costs $6, and a unit of seed costs $12 . The farmer should
a. produce less wheat. b. buy only seed. c. buy more seed and less labor. d. buy less seed and more labor.