The Ratio of Money Created by the Lending Activities of the Banking

question 100

Multiple Choice

The ratio of money created by the lending activities of the banking system to the money created by the government's central bank is called the:

• A) money multiplier.
• B) reserve ratio.
• C) federal funds.
• D) demand deposits.

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Definitions:

Variation

The differences or changes in data or characteristics within a sample or population.

Increase

A rise in magnitude, quantity, or degree; an upward trend in a numerical value or variable.

RSquare Value

A statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable(s) in a regression model.

Regression Equation

A mathematical formula used to predict a variable based on its relationship with one or more other variables.