Which of the Following Regarding the Source Path Tree Is

question 112

Multiple Choice

Which of the following regarding the Source Path Tree is TRUE?

• A) The RP is the root of the tree.
• B) It is represented by a (*, G) entry.
• C) It is the initial forwarding path in ASM mode.
• D) It can be created without the RP.

---

Definitions:

Simple Money Multiplier

A formula that estimates the maximum amount of money that banking can generate with each dollar of reserves.

Required Reserve Ratio

The fraction of deposits that banks are required by law to keep on hand or with the central bank, rather than lend out.

Money-Creation Process

The mechanisms through which new money is produced and introduced into the economy, primarily conducted by central banks and commercial banks.

Government Securities

Financial instruments issued by the government to finance its expenditures, including bonds, bills, and notes.