If the Monetary Base Is Denoted by B, Rr Is

question 42

Multiple Choice

If the monetary base is denoted by B, rr is the ratio of reserves to deposits, and cr is the ratio of currency to deposits, then the money supply is equal to ______ divided by ______ multiplied by B.

• A) (rr + 1); (rr + cr)
• B) (cr + 1); (cr + rr)
• C) (rr + cr); (rr + 1)
• D) (rr + cr); (cr + 1)

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