If Required Reserves Are Expressed by RR; the Required Reserve

question 57

Multiple Choice

If required reserves are expressed by RR; the required reserve rate by rD and deposits by D, the simple deposit expansion multiplier is expressed as:

• A) RD × D.
• B) (1/rD ) D.
• C) RR × D.
• D) 1/rD.

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Definitions:

Product Line

A group of related products marketed by a company under a single brand name.

Cash Payments Journal

A financial journal that records all cash outlays or disbursements made by a company during a period.

Accounts Payable Subsidiary Ledger

A ledger containing all account details of amounts owed by a business to its suppliers or creditors, facilitating more detailed tracking alongside the general ledger.

Payment For Supplies

The monetary expenditure for obtaining supplies necessary for the operation of a business.