The Deposit Multiplier Is Given by the Formula

question 28

Multiple Choice

The deposit multiplier is given by the formula

• A)change in checkable deposits ÷ change in required reserves.
• B)change in checkable deposits ÷ change in excess reserves.
• C)change in excess reserves ÷ change in checkable deposits.
• D)change in legal reserves ÷ change in excess reserves.

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