If Currency Outstanding Equals $200 Million, Checkable Deposits Equal $1

question 65

Multiple Choice

If currency outstanding equals $200 million, checkable deposits equal $1 billion, reserves equal $150 million, and the required reserve ratio is 0.10, the money multiplier equals

• A)0.86.
• B)3.14.
• C)3.43.
• D)4.

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