In the Simple Model of Multiple Deposit Creation in Which

question 68

Multiple Choice

In the simple model of multiple deposit creation in which banks do not hold excess reserves, the increase in chequable deposits equals the product of the change in excess reserves and the ________.

• A) reciprocal of the excess reserve ratio
• B) simple deposit multiplier
• C) reciprocal of the simple deposit multiplier
• D) bank rate

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Definitions:

Third-Degree Price Discrimination

A pricing strategy where different prices are charged to different customer groups based on their elasticity of demand.

First-Degree Price Discrimination

A pricing strategy where a seller charges the maximum price that each consumer is willing to pay, capturing the entire consumer surplus.

Monopolist

An entity or person that has exclusive control over the supply of a particular good or service in the market, potentially influencing prices and availability.

Greater Profits

Increased financial gains achieved by a business, indicating higher revenue over costs compared to a previous period or benchmark.