To the Extent That a Bank Holds Excess Reserves,which of the Following

question 82

Multiple Choice

To the extent that a bank holds excess reserves,which of the following is a consequence?

• A) The deposit multiplier is smaller.
• B) The total amount of loans is larger.
• C) The deposit multiplier is larger.
• D) Owner's equity for an individual bank is larger.
• E) Owner's equity for an individual bank is smaller.

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