In the Simple Model of Multiple Deposit Creation in Which

question 57

Multiple Choice

In the simple model of multiple deposit creation in which banks do not hold excess reserves,the increase in checkable deposits equals the product of the change in reserves and the

• A)reciprocal of the excess reserve ratio.
• B)simple deposit expansion multiplier.
• C)reciprocal of the simple deposit multiplier.
• D)discount rate.

---

Definitions:

Tutoring Service

A service that provides individualized or group teaching outside of the traditional educational institutions to enhance understanding in specific subjects.

Inventory Carrying Costs

The total costs associated with holding inventory, including storage, insurance, taxes, opportunity costs, and depreciation.

Real Estate Agencies

Businesses that facilitate the buying, selling, leasing, or renting of real estate properties.

Hospitals

Health care institutions providing patient treatment with specialized medical and nursing staff and medical equipment.