A Waiting Line Meeting the Assumptions of M/M/1 Has Average

question 16

Multiple Choice

A waiting line meeting the assumptions of M/M/1 has average time between arrivals of 20 minutes and services items in an average of 10 minutes each; the utilization factor is approximately

• A) 0.25
• B) 0.33
• C) 0.50
• D) 0.67
• E) 3.00

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Definitions:

Actual Money Multiplier

The real-world effect of a change in the base money supply on the money supply, taking into account changes in reserves and currency holdings.

Simple Money Multiplier

Refers to the ratio indicating the maximum amount of money that banks can theoretically generate with each dollar of reserves.

Cash Withdrawals

The process of taking money out of a bank account using a debit card or bank slip.

Money Supply

The entire stock of currency and other liquid instruments circulating in a country's economy as of a particular time.