Which of the Following Statements Is True

question 183

Multiple Choice

Which of the following statements is true?

• A) The higher the required reserve ratio, the higher the deposit multiplier.
• B) The higher the excess reserves, the higher the deposit multiplier.
• C) The value of the deposit multiplier falls if economic agents withdraw cash from the banking system.
• D) The deposit multiplier only works to increase money supply, not to decrease money supply.

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Definitions:

Technopoly

A society that is overly dependent on technology, where technology dominates the culture, impacting human activities and social interactions.

Morality

Principles concerning the distinction between right and wrong or good and bad behavior.

Multinational Corporations

Large companies operating in several countries around the world, often with a centralized head office but decentralized operations and production.

Research and Development

The part of a business activity that is concerned with acquiring new knowledge and using it to develop new products, processes, or services or to improve existing ones.