A Simple Deposit Multiplier Equal to Four Implies a Required

question 156

Multiple Choice

A simple deposit multiplier equal to four implies a required reserve ratio equal to

• A)100 percent.
• B)50 percent.
• C)25 percent.
• D)0 percent.

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Definitions:

Statutory Laws

Laws enacted by a legislative body that are set down in writing, as opposed to laws derived from court decisions (common law) or customary practices.

Stare Decisis

A legal principle that obligates courts to follow previous rulings or precedents when making a decision on a similar case.

Precedent

A principle or rule established in a previous legal case that is either binding on or persuasive for a court when deciding subsequent cases with similar issues or facts.

Legislative Acts

Laws passed by a legislature or governing body that dictate codes of behavior, rights, and obligations.