If R Is the Required Reserve Ratio,which of the Following

question 14

Multiple Choice

If r is the required reserve ratio,which of the following is the simple money multiplier?

• A)r
• B)1/(1 - r)
• C)1 - r
• D)1/r
• E)r²

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Definitions:

Outstanding Balance

Represents the total amount of money owed on a loan, credit card, or any debt, remaining to be paid.

Operating Expenses

The costs associated with the day-to-day functions of a business, excluding direct production costs.

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Unit

A single, distinct element that forms part of a system, often used for measuring, standardization, or as part of a greater whole.