If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acquired checkable deposits, then the effective monetary multiplier for the banking system will be
A. 3.
B. 4.
C. 5.
D. 6.
Answer: B
You might also like to view...
Unregulated markets will tend to
a. rapidly deplete any natural resource. b. naturally conserve any depletable natural resource by pushing up its price every year by a constant dollar amount. c. naturally conserve a depletable resource by pushing up its price at a constant rate every year. d. deplete a resource unless new supplies are found.
Which of the following would likely cause the greatest deadweight loss?
a. a tax on cigarettes b. a tax on salt c. a tax on cruise line tickets d. a tax on gasoline
The 1974 federal legislation that exempted employers from certain state laws governing health insurance was:
a. HIPAA. b. CON. c. SCHIP. d. ERISA. e. COBRA.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.