C/D Is the Currency Drain Ratio and R/D Is the Desired

question 293

Multiple Choice

C/D is the currency drain ratio and R/D is the desired reserve ratio. The money multiplier equals

• A) \(\frac { 1 + C / D } { R / D + C / D }\)
• B) \(\frac { 1 + R / D } { R / D + C / D }\)
• C) \(\frac { 1 + R / D } { 1 + C / D }\)
• D) \(\frac { R / D - C / D } { 1 + R / D }\)
• E) \(\frac { R / D + C / D } { 1 + C / D }\)

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