The Multiple by Which the Chartered Banking System Can Increase

question 107

Multiple Choice

The multiple by which the chartered banking system can increase the supply of money on the basis of each dollar of excess reserves is equal to:

• A)the reciprocal of the desired reserve ratio.
• B)1 minus the desired reserve ratio.
• C)the reciprocal of the income velocity of money.
• D)1/MPS.

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Definitions:

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Middle Lamella

The layer composed of pectin polysaccharides that serves to cement together the primary cell walls of adjacent plant cells.

Primary Walls

The thin, flexible and extensible layer of the cell wall that is first formed when a plant cell is growing, made mainly of cellulose and other polysaccharides.

Scanning Electron Microscopy

A type of electron microscopy that produces high-resolution images of the surface of a sample by scanning it with a focused beam of electrons.