The Oversimplified Money Multiplier Formula, When the Required Reserve Ratio

question 30

Multiple Choice

The oversimplified money multiplier formula, when the required reserve ratio is m, is

• A)change in money supply = change in reserves × m.
• B)change in money supply = (1 / m) / change in reserves.
• C)change in money supply = (1 / m) × change in reserves.
• D)change in money supply = m / change in reserves.

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Definitions:

Collecting Ducts

Series of tubules and ducts in the kidney that function in urine processing and the regulation of mineral balance.

Distal Convoluted Tubule

A portion of the kidney nephron where the final adjustment of urine concentration and composition occurs.

Plasma Osmolality

Plasma osmolality measures the concentration of solutes in the blood plasma, indicating the body's state of hydration and influencing water balance and distribution.

Supraoptic Region

A region located above the optic chiasm in the brain, closely associated with the hypothalamus, involved in the regulation of water balance and hormone secretion.