If the Reserve Requirement Is 10%, Then the Potential Money

question 93

Multiple Choice

If the reserve requirement is 10%, then the potential money multiplier is _____ and the actual money multiplier is _____.

• A) 10; greater than 10
• B) 100; greater than 100
• C) 10; less than 10
• D) 100; less than 100

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Definitions:

Take Risks

The willingness or decision to engage in actions that have uncertain outcomes, potentially leading to loss or failure in pursuit of opportunities for success or improvement.

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product much faster than with individual craftsmanship.