The Simple Money Multiplier Is

question 105

Multiple Choice

The simple money multiplier is

• A)the reciprocal of the required reserve ratio.
• B)the multiple by which the money supply will change due to a change in the monetary base.
• C)(1/r_D).
• D)Both a and c are correct.

---

Definitions:

Domestic Corporations

Companies that are incorporated and operate within the legal boundaries of a country.

Excess Fair Value

The amount by which the fair value of an asset exceeds its carrying value on the balance sheet, often recognized during business combinations.

Franchise Contract

A legal agreement granting a franchisee the rights to operate a business under the franchisor's brand and operational model in exchange for fees or royalties.

Noncontrolling Interest

Noncontrolling interest is the portion of equity in a subsidiary not attributable, directly or indirectly, to a parent company, which is reported in the consolidated financial statements of the parent company.