The Simple Deposit Multiplier Is the Ratio of the Amount

question 144

Multiple Choice

The simple deposit multiplier is the ratio of the amount of

• A)new reserves created by the banks to the amount of deposits.
• B)new reserves created by the banks to the amount of loans.
• C)deposits created by the banks to the amount of new reserves.
• D)loans issued by the banks to deposits created by the banks.

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Definitions:

State Regulations

State regulations are legal requirements established by individual states that govern the operation of businesses, aiming to protect the public interest.

Corporations

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