If the Currency Drain Ratio Is 30 Per Cent and the Desired

question 45

Multiple Choice

If the currency drain ratio is 30 per cent and the desired reserve ratio is 10 per cent, the money multiplier is

• A) 3.25.
• B) 0.80.
• C) 1.25.
• D) 5.00.
• E) 10.0.

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Definitions:

Complementary Product

A product that adds value to another product when used together, enhancing the consumer's experience or utility.

Homogenous

Products, services, or groups that are identical, similar in nature, and indistinguishable from each other in the eyes of the consumer.

Substitute Product

A product or service that consumers can use in place of another to satisfy the same need or desire.

Complementary Product

A product that adds value to another, typically unrelated product when used together.