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.

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Definitions:

Subjective Theory

A theory proposing that certain concepts, values, or decisions are dependent on individual perspectives, feelings, or opinions rather than objective facts.

Fraud

The intentional deception made for personal gain or to damage another individual.

Unilateral Contract

A contract in which one party makes a promise in exchange for an act by another party.

Bilateral Contract

An agreement between two parties where each party makes a promise to the other, with obligations and benefits on both sides.