The Money Multiplier Is Greater Than 1 Because Most Banks

question 127

True/False

The money multiplier is greater than 1 because most banks keep more than 100 percent of any increase in bank deposits as reserves.

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Definitions:

Mean

The arithmetic average of a set of numbers, calculated by adding them together and dividing by the number of values.

Average Score

The sum of all individual scores divided by the number of scores, often used as a measure of central tendency.

Median

The middle value in a list of numbers sorted in ascending or descending order, or the mean of the two middle numbers if the list has an even number of values.

Middle Value

Also known as the median, it is the value separating the higher half from the lower half of a data sample, array, or distribution.