Which of the Following Is the Simple Money Multiplier Equal

question 92

Multiple Choice

Which of the following is the simple money multiplier equal to?  

• A) 1 divided by the dollar amount of desired reserves 
• B) the dollar amount of total reserves divided by the dollar amount of excess reserves 
• C) the dollar amount of excess reserves divided by the dollar amount of total reserves 
• D) 1 divided by the percentage of deposits that must be held by a bank in the form of reserves

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Definitions:

Graph

A visual representation of data or mathematical functions in a coordinate system, often used for easier interpretation or analysis.

Quadratic Formula

A formula that provides the solutions to a quadratic equation ax^2 + bx + c = 0 as x = (-b ± sqrt(b^2 - 4ac))/(2a).

Maximum Height

The highest point or peak that an object or entity can reach or has reached.

Rectangular

Relating to a shape or object with a longer length than width, characterized by right angles and parallel opposite sides.