If R Is the Required Reserve Ratio, Which of the Following

question 7

Multiple Choice

If r is the required reserve ratio, which of the following is the simple money multiplier?

• A) r
• B) \(1 / ( 1 - r )\)
• C) \(1 - r\)
• D) 1/r
• E) 2r

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Definitions:

Appraisal Right

A dissenting shareholder’s right to have his or her shares appraised and to receive monetary compensation from the corporation for their value.

Shareholder Vote

An act where individuals or entities holding shares in a corporation participate in deciding on corporate matters through voting.

Consolidation

The process of combining multiple debts, loans, or businesses into a single new loan or corporate entity.

Legal Existence

A term indicating that an entity is recognized under the law as having legal rights and obligations.