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Maurice has an extremely high IQ-over 150. He has complained about never having held down a job that satisfied him. Which of the following possibilities is MOST likely, based on the research findings presented in the chapter?
Reserve Ratio
The reserve ratio is the fraction of total deposits that a bank is required to hold in reserve and not loan out, acting as a regulatory tool to ensure the stability of the banking system.
Bank Reserves
Funds that banks hold to meet immediate withdrawal demands and regulatory requirements.
Money Supply
The total amount of money—coins, currency, and bank deposits—circulating in an economy.
Money Multiplier
The ratio that measures the maximum amount of commercial bank money that can be created by a given unit of central bank money.
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