If the required reserve ratio is 25 percent, the simple deposit multiplier is
A) 5.0.
B) 2.5.
C) 4.0.
D) 10.0.
C
You might also like to view...
What is the best description of Northern wages from 1860-1864?
a. A relatively large decrease in demand relative to the decrease in supply led to lower wages and fewer people working. b. An increase in the demand for labor and decrease in the supply of labor led to lower wages and fewer people working. c. Increases in both the demand and supply for labor led to more people employed who were working for about the same wages. d. A decrease in the demand for labor coupled with an increase in the supply led to many fewer people working, but those who were employed worked for higher wages.
The movement in U.S. population from the farms to urban areas was caused primarily by
a. each member of a farm family specializing in a particular set of tasks b. a sharp increase in farm productivity c. a decline in the demand for labor in urban areas d. a sharp decline in the demand for agricultural products e. increased education among married women
Other things the same, which of the following could be a consequence of an appreciation of the U.S. real exchange rate?
a. John, a French citizen, decides that Iowa pork is now relatively less expensive and orders more for his restaurant. b. Nick, a U.S. citizen, decides that the trip to Nepal he's been thinking about is now affordable. c. Roberta, a U.S. citizen, decides to import fewer windshield wipers for her auto parts company. d. All of the above are correct.
Another source of financing, in which an investor takes an ownership position in return for shares of stock in the company and the promises of capital gains, is called debt financing.
a. true b. false