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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Definitions:

Direct Observation

A research method involving the direct and unobtrusive observation of individuals or phenomena in their natural setting.

Chemical Make-up

Refers to the composition of a substance, detailing its various chemical elements and compounds.

Produces Heat

A process or object that generates thermal energy.

Direct Observation

A method of gathering data by watching behavior or phenomenon in its natural setting without manipulation or control by the observer.