If the Reserve Ratio Is 10 Percent, What Is the Money

question 67

Multiple Choice

If the reserve ratio is 10 percent, what is the money multiplier?

• A)100
• B)10
• C)9/10
• D)1/10

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Definitions:

Toll Road

A public or private roadway for which a fee is charged to use, typically used to fund maintenance and new infrastructure.

Produce Revenue

The process of generating income from business activities.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less, used to finance the national debt.

Minimum Denomination

The smallest value of a security or financial instrument that can be purchased or traded.