The Maximum Potential Money Multiplier Is Equal to

question 22

Multiple Choice

The maximum potential money multiplier is equal to

• A) the reserve ratio.
• B) the inverse of the required reserve ratio.
• C) one minus the reserve ratio
• D) the number of dollars on reserve.

---

Definitions:

Increase

A rise in the amount, number, or degree of something.

Punishment

A process by which a consequence immediately follows a behavior which decreases the future likelihood of that behavior occurring.

Effectiveness

The degree to which something is successful in producing a desired result; the ability of a thing or action to achieve its intended outcome.

Learning Process

refers to the methods or pathway through which individuals acquire new knowledge, behaviors, skills, values, or preferences.