If the Required Reserve Ratio, M, Is 20 Percent, Then

question 158

Multiple Choice

If the required reserve ratio, m, is 20 percent, then the oversimplified money multiplier is

• A)10
• B)5
• C)4
• D)2

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Definitions:

Rationality

The quality of being based on or in accordance with reason or logic.

Logical

Relating to or involving clear, sound reasoning.

Personality

The characteristic set of behaviors, cognitions, and emotional patterns that evolve from biological and environmental factors.

Rationality

The characteristic of adhering to or being aligned with logic or reasoning.