The fraction of deposits that banks are required to keep is known as the
A) discount rate.
B) required reserve ratio.
C) deposit multiplier.
D) money multiplier.
B
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Marginal cost is defined as
a. the additional cost attributable to the last unit produced. b. the change in fixed costs associated with the production of one more unit of output. c. the difference between total revenue and total cost. d. price times quantity.
Refer to the figure above. What is the producer surplus after Barylia opens up to free trade?
A) $225 B) $550 C) $750 D) $900
In the above figure, the shift from AD1 to AD2 might have been the result of
A) an increase in government expenditure. B) a decrease in taxes. C) an increase in the quantity of money. D) All of the above answers are correct.
Capital flight
A) increases reserves. B) is never associated with the expectation of devaluation. C) may undo expected devaluation. D) reduces losses during a devaluation scare. E) decreases reserves and may induce devaluation.