If the Required Reserve Ratio Is 10 Percent, the Simple

question 127

Multiple Choice

If the required reserve ratio is 10 percent, the simple money multiplier must be equal to _____

• A) 5.
• B) 10.
• C) 20.
• D) 40.
• E) 50.

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Definitions:

Antifederalists

Opponents of the ratification of the U.S. Constitution, who advocated for a decentralized governmental structure to grant more power to state governments.

Constitutional Convention

A constitutional convention is a formal gathering of delegates for the purpose of drafting or amending a constitution.

National Government

The organization through which political authority is exercised at the national level, responsible for creating and enforcing laws, and managing the affairs of a nation.

Checks and Balances

A fundamental principle of the U.S. Constitution designed to ensure that no single branch of government becomes too powerful, enabling each branch to limit the powers of the others.