Use the Following to Answer Questions

question 364

Multiple Choice

Use the following to answer questions:
Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20%.Banks hold no excess reserves.A customer deposits $6000 in her chequable deposit.
-(Scenario: Holding Cash) Refer to Scenario: Holding Cash. The money multiplier is:

• A)2.
• B)greater than 5.
• C)5.
• D)less than 5.

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Definitions:

Internal Control

Procedures and mechanisms implemented by a business to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Politically Organized Society

A society that has a structured system of governance, including laws, leadership, and institutions to regulate its people's conduct.

Single Ruler

A governance or leadership structure where one individual holds supreme authority over a territory or group.

Ranked Hierarchy

An organizational structure where entities are ranked according to levels of importance or authority.