The Ratio That Relates the Change in the Money Supply

question 138

Multiple Choice

The ratio that relates the change in the money supply to a given change in the monetary base is called the

• A)money multiplier.
• B)required reserve ratio.
• C)deposit ratio.
• D)discount rate.

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Definitions:

Reasonable Period

A time frame considered to be fair and appropriate under the circumstances, often used in legal and contractual contexts.

Bailee

A bailee is a person or entity that temporarily holds property under a bailment agreement, in which physical possession but not ownership of personal property is transferred from one party (the bailor) to another (the bailee) for a specified purpose.

Risk of Loss

Refers to the risk that an item may be damaged, destroyed, or lost, and determines which party is responsible for bearing that risk at different points in a transaction.

Negotiable Warehouse Receipt

A document used in the trading of stored goods which proves the holder is entitled to take possession of the goods, and it is transferable by endorsement.