The Simple Deposit Multiplier Is the Ratio of the Amount

question 164

Multiple Choice

The simple deposit multiplier is the ratio of the amount of

• A)new reserves created by the banks to the amount of deposits.
• B)new reserves created by the banks to the amount of loans.
• C)deposits created by the banks to the amount of new reserves.
• D)deposits created by the banks.
• E)new economic activity to the amount of new reserves.

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