If the Required Reserve Ratio Is

question 45

Multiple Choice

If the required reserve ratio is .20, the excess reserve ratio is .05, and there is no currency drain, what is the multiplier?

• A)10
• B)6.66
• C)5
• D)4

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Definitions:

Payable On Demand

A financial term referring to a debt or obligation that must be paid or fulfilled whenever the lender or beneficiary demands.

Numerical

Relating to numbers, or expressed or represented by numbers.

Written Amounts

Quantitative figures or values that are documented or recorded in written form, especially in financial transactions.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a designated person.