Assuming Initially That the Required Reserve Ratio = 10%,the Currency-Deposit

question 43

Multiple Choice

Assuming initially that the required reserve ratio = 10%,the currency-deposit ratio = 75%,and the excess reserve ratio = 156%,an increase in the excess reserve ratio to 200% causes the M1 money multiplier to ________,everything else held constant.

• A)increase from 0.15 to 0.33
• B)decrease from 0.73 to 0.61
• C)increase from 0.54 to 0.67
• D)decrease from 1.67 to 1.54

---

Definitions:

Metaphors

Figures of speech in which a word or phrase is applied to an object or action to which it is not literally applicable, often used for symbolic or comparative purposes.

Expressions

Ways in which thoughts, feelings, or ideas are conveyed through words, gestures, or facial expressions.

Change Hindrances

Obstacles that impede progress and make it difficult for the organization to adapt to different situations.

Ineffective Communication

A process where the transfer of information is unsuccessful or misinterpreted by the receiver, leading to misunderstanding and obstacles in achieving objectives.