The Higher the Required Reserve Ratio,_____

question 138

Multiple Choice

The higher the required reserve ratio,_____.

• A)the larger the money multiplier
• B)the smaller the money multiplier
• C)the more the excess reserves after each round of the money-creation process
• D)the more the money that can be lent in each round of the money-creation process
• E)the lower the demand for cash by the non-banking public

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