If the Required Reserve Ratio Is 10 Percent,what Is the Simple

question 130

Multiple Choice

If the required reserve ratio is 10 percent,what is the simple deposit multiplier?

• A) 20
• B) 100
• C) 5
• D) 10
• E) 2

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Definitions:

Net Income

The profit a company holds onto after removing expenses and taxes from its earned revenue.

Operating Revenues

Income earned from a company's main business activities or operations, excluding non-operating revenue like interest or sale of assets.

Operating Expenses

Regular costs incurred in the process of running a business, such as rent, utilities, and payroll, that do not include the cost of goods sold.

Interest Expense

The cost incurred by an entity for borrowed funds.