The _____ Multiplier Is Equal to _____

question 80

Multiple Choice

The _____ multiplier is equal to _____.

• A) reserve; the required reserve ratio
• B) bank loan; the required reserve ratio divided by 1
• C) money; 1 divided by the required reserve ratio
• D) excess reserve; change in reserves divided by the change in deposits

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Definitions:

Current Revenues

Income generated from the normal business operations within the current accounting period.

Anticipated Current Expenses

Projected expenses that a company expects to incur within the current accounting period.

Petty Cash Funds

A small amount of cash on hand used for paying minor expenses like office supplies or courier fees.

Minor Business Expenses

Smaller or less significant costs incurred in the operation of a business.