The Formula That Links Checkable Deposits to the Money Supply

question 54

Multiple Choice

The formula that links checkable deposits to the money supply is

• A) M = .
• B) M = × D.
• C) D = × M.
• D) D = (1 + c) × M.

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Definitions:

Assignee

An individual or entity to whom rights or obligations are transferred from another party.

Obligor

An individual or entity legally bound to fulfill an obligation, such as paying a debt.

Obligor

A person or entity legally bound to provide a payment, service, or other benefit to another, known as the obligee.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.