The Simple Deposit Multiplier Is the Ratio of the Amount

question 13

Multiple Choice

The simple deposit multiplier is the ratio of the amount of:

• A)new reserves created by the banks to the amount of deposits.
• B)new reserves created by the banks to the amount of loans.
• C)deposits created by the banks to the amount of new reserves.
• D)deposits created by the banks.

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Definitions:

Limited-Function Merchant Wholesaler

A wholesaler that provides a limited range of services, focusing on specific functions like storage or delivery rather than comprehensive support.

Full-Function Merchant Wholesaler

A wholesaler that provides a range of services including stocking inventory, operating warehouses, and offering credit to retailers.

Logistics

Process of coordinating flow of goods, services, and information among members of the supply chain.

Supply Chain

Complete sequence of suppliers that contribute to creating a good or service and delivering it to business users and final consumers.