When Banks Hold Excess Reserves, the Size of the Money

question 40

Multiple Choice

When banks hold excess reserves, the size of the money multiplier

• A)is less than the simple deposit multiplier would suggest.
• B)is greater than the simple deposit multiplier would suggest.
• C)is equal to the size of the simple deposit multiplier.
• D)becomes infinite.

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Definitions:

Interventricular Septa

The thick wall separating the lower chambers (ventricles) of the heart.

Auricles

Auricles, in anatomy, primarily refer to the external part of the ear; however, they can also denote ear-like extensions or appendages in other organs, such as the atria of the heart.

Serous Membrane

A smooth tissue membrane consisting of two layers of mesothelium, which secrete serous fluid to lubricate and reduce friction between tissue layers.

Aortic Semilunar Valves

Valves located between the aorta and the left ventricle of the heart that prevent blood from flowing back into the heart.