If the Required Reserve Ratio (RR)is 20 Percent,the Simple Deposit

question 75

Multiple Choice

If the required reserve ratio (RR) is 20 percent,the simple deposit multiplier is

• A)2.
• B)5.
• C)10.
• D)20.

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Definitions:

Fourfold Test

A test for employment based upon ownership of tools, control, chance of profit, and risk of loss.

Risk of Profit

The possibility of encountering losses or gains in financial investments due to market fluctuations.

Control

The power or authority to manage, direct, or govern individuals, organizations, or systems.

Indefinite Hiring

An employment arrangement without a predetermined end date, typically at will and subject to termination by either party with notice.