Table 29-5. Bank of Kopeka

question 310

Multiple Choice

Table 29-5.
Bank of Kopeka

-Refer to Table 29-5.Assume there is a reserve requirement and the Bank of Kopeka is exactly in compliance with that requirement.Assume the same is true for all other banks.Lastly,assume people hold only deposits and no currency.What is the money multiplier?

• A) 5
• B) 10
• C) 15
• D) 20

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Definitions:

Breakdown Theory

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