The Multiple by Which the Commercial Banking System Can Increase

question 163

Multiple Choice

The multiple by which the commercial banking system can increase the supply of money on the basis of each dollar of excess reserves is equal to

• A) the reciprocal of the required reserve ratio.
• B) 1 minus the required reserve ratio.
• C) the reciprocal of the income velocity of money.
• D) 1/MPS.

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Definitions:

Alfred Russel Wallace

A British naturalist, explorer, geographer, and biologist, best known for independently conceiving the theory of evolution through natural selection.

Charles Darwin

A 19th-century naturalist and geologist known for developing the theory of natural selection, significantly contributing to the understanding of evolution.

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Often referred to as the "Father of English Geology," he created the first nationwide geological map and contributed significantly to the science of stratigraphy.

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Professionals or scientists dedicated to the study of the Earth's physical structure and substance, its history, and the processes that act on it.