The Multiple by Which the Commercial Banking System Can Increase

question 163

Multiple Choice

The multiple by which the commercial banking system can increase the supply of money on the basis of each dollar of excess reserves is equal to

• A) the reciprocal of the required reserve ratio.
• B) 1 minus the required reserve ratio.
• C) the reciprocal of the income velocity of money.
• D) 1/MPS.

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Definitions:

Production Manager

A role responsible for overseeing the production process of a company, ensuring efficiency, quality control, and meeting production targets.

Value Creation

The process through which businesses or organizations produce goods or services that are worth more than the cost of resources used, ultimately benefiting customers, stakeholders, or society.

Value Chain Management

The strategic analysis and optimization of the series of steps that a company takes to deliver a product or service to the market.

PERT

Project Evaluation and Review Technique, a planning and control tool for managing complex projects.