The formula for the money multiplier is:
A. 1/c where c is the ratio of cash people hold to deposits.
B. 1/r where r is the reserve ratio.
C. 1/e where e is the excess reserve ratio.
D. 1(1 ? r) where r is the required reserve ratio
Answer: B
You might also like to view...
If the supply of hotel rooms falls and all other relevant factors remain unchanged, then,
a. the demand for hotel rooms will fall. b. the quantity demanded of hotel rooms will fall. c. the demand for hotel rooms will rise. d. the quantity demanded of hotel rooms will rise.
A public good
a. possesses the characteristic of nonrivalry in consumption b. is one whose benefits cannot be shared c. is provided by the public sector d. has nonexcludable benefits e. both (a) and (d)
Choose one of the arguments countries generally use to justify protection for a particular industry. Describe the argument and any inherent problems with it. Is the argument primarily an economic or a noneconomic one?
What will be an ideal response?
Financial markets are
A) institutions that make loans to borrowers and obtain funds from savers. B) organized exchanges where securities and financial instruments are bought and sold. C) organized exchanges where currencies are traded. D) institutions that regulate financial instruments.