The More Excess Reserves Banks Choose to Keep

question 246

Multiple Choice

The more excess reserves banks choose to keep

• A)the larger the deposit multiplier.
• B)the smaller the deposit multiplier.
• C)the higher the required reserve ratio.
• D)the lower the required reserve ratio.

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Definitions:

Income Inequality

The uneven distribution of income within a population, leading to gaps between the wealthiest and poorest individuals.

Standard Census

A government-enumerated survey conducted at regular intervals that collects comprehensive demographic, social, and economic data about the population.

Income Distribution

Describes how a country's total GDP is spread amongst its population, affecting wealth disparity and economic stability.

Lifetime Distribution

The distribution of a certain attribute, such as income or wealth, over the lifespan of an individual or system.