Other Things the Same,if Reserve Requirements Are Increased,the Reserve Ratio

question 35

Multiple Choice

Other things the same,if reserve requirements are increased,the reserve ratio

• A)increases,the money multiplier increases,and the money supply increases.
• B)increases,the money multiplier decreases,and the money supply decreases.
• C)decreases,the money multiplier increases,and the money supply increases.
• D)decreases,the money multiplier decreases,and the money supply increases.

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Definitions:

Financial Statements

The formal records of the financial activities and position of a business, individual, or other entity, presenting the results of operations and the financial status through three primary documents: balance sheet, income statement, and cash flow statement.

Net Income

The residual profits a company holds after deducting expenses, taxes, and costs from the gross income.

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities; also known as shareholders' equity.

Deferral

In accounting, the postponement of recognition of an expense or revenue that has been incurred or earned to a later accounting period.