The Multiple by Which the Commercial Banking System Can Expand

question 26

Multiple Choice

The multiple by which the commercial banking system can expand the supply of money is equal to the reciprocal of

• A) the MPS.
• B) its actual reserves.
• C) its excess reserves.
• D) the reserve ratio.

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Definitions:

Pyramidal

Referring to a structure, cell, or organization shaped like a pyramid, often used in describing certain brain cells or hierarchical systems.

Olfactory

Pertains to the sense of smell.

Myelin Sheath

A layer of fat cells that encases and insulates most axons.

Dendrite

Extensions of neurons that receive signals from other neurons, playing a crucial role in the transmission of neural information.