If the Currency Drain Ratio Is 0

question 26

Multiple Choice

If the currency drain ratio is 0.2 and the desired reserve ratio is 0.03, the money multiplier is

• A)3.23.
• B)4.46.
• C)5.22.
• D)0.76.
• E)6.67.

---

Definitions:

Logarithm

The degree to which a base, typically 10 or e, must be raised to yield a certain number.

Properties

The characteristics, attributes or qualities that an object, substance, or mathematical entity possesses.

Logarithms

The exponents to which a fixed base must be raised to produce a given number.

Expand

In mathematics, expanding refers to the process of simplifying an expression or equation by multiplying out brackets and combining like terms.