If m equals the maximum number of new dollars that can be created for a single dollar of excess reserves and R equals the required reserve ratio, then for the banking system:
A. R = m - 1.
B. m = R - 1.
C. m = 1/R.
D. R = m/1.
Answer: C
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A perfectly straight Lorenz curve would mean:
A. perfect inequality, and it does not exist in the real world. B. perfect equality, and it does not exist in the real world. C. perfect equality, and is more common among the wealthy, developed nations. D. perfect inequality, and is more common among the developing nations.
To achieve the optimal provision of public goods, the
a. market should be allowed to arrive at an equilibrium without government intervention. b. government must limit the provision of the goods. c. government must tax producers of the goods. d. government must either provide the goods or subsidize their production.
Based on the circular flow model, money flows from households to businesses in:
a. both factor and product markets. b. product markets. c. factor markets. d. neither factor nor product markets.
Refer to the data. The average fixed cost of producing 3 units of output is:
A. $8.
B. $7.40.
C. $5.50.
D. $6.