C/D Is the Currency Drain Ratio and R/D Is the Desired

question 24

Multiple Choice

C/D is the currency drain ratio and R/D is the desired reserve ratio. The money multiplier equals

• A) \( \frac{R / D-C / D}{1+R / D} \).
• B) \( \frac{1+C / D}{R / D+C / D} \).
• C) \( \frac{1+R / D}{1+C / D} \).
• D) \( \frac{R / D+C / D}{1+C / D} \).
• E) \( \frac{1+R / D}{R / D+C / D} \).

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