The Higher the Required Reserve Ratio,_____

question 138

Multiple Choice

The higher the required reserve ratio,_____.

• A)the larger the money multiplier
• B)the smaller the money multiplier
• C)the more the excess reserves after each round of the money-creation process
• D)the more the money that can be lent in each round of the money-creation process
• E)the lower the demand for cash by the non-banking public

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Definitions:

Renounces

The act of formally or officially declaring the abandonment or rejection of a right, title, position, or allegiance.

Agency Law

A body of law concerning the relationship where one party (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties.

Instructions

Directions or orders given by one party to another, especially in the context of a legal, business, or contractual relationship.

Revocation

The official cancellation or withdrawal of an offer, right, or privilege, often requiring a formal declaration.