Examlex
A flashlight bulb is connected to a 5.5 V dry cell. If it draws 0.5 A, what is its resistance? (Resistance equals voltage divided by current.)
Simple Money Multiplier
A formula that determines the maximum amount of money that banks can create with a given level of reserves.
Excess Reserves
Banks' reserves that exceed the minimum required by the central bank, available for lending or investment.
Interest Rate
The price, expressed as a percentage of the principal, that a borrower must pay a lender for the use of funds.
Excess Reserves
are bank reserves held in excess of what is required by the central bank, which can be lent out to earn interest.
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