If the Currency Drain Ratio Is 30 Per Cent and the Desired

question 45

Multiple Choice

If the currency drain ratio is 30 per cent and the desired reserve ratio is 10 per cent, the money multiplier is

• A) 3.25.
• B) 0.80.
• C) 1.25.
• D) 5.00.
• E) 10.0.

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