Statement I: Time Deposits Have Different Reserve Requirements Than Demand

question 300

Multiple Choice

Statement I: Time deposits have different reserve requirements than demand deposits.
Statement II: The deposit expansion multiplier is,in reality,quite a bit lower than it would be if we based it solely on the reserve ratio.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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