Which of the Following Statements Is Correct? in the Special

question 44

Multiple Choice

Which of the following statements is correct? In the special case of the 100-percent reserve banking the money multiplier is

• A)0 and banks create money.
• B)0 and banks do not create money.
• C)1 and banks create money
• D)1 and banks do not create money.

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Definitions:

Element

A substance that cannot be broken down into simpler substances by chemical means and is made up of atoms all with the same number of protons.

Isotope

Variants of a particular chemical element which differ in neutron number, and consequently in mass, but not in electrical charge.

Sr

Strontium, a chemical element with symbol Sr and atomic number 38, known for its bright-red flames in fireworks.

Isotope

Variants of a particular chemical element which differ in neutron number, and consequently in nucleon number, but have the same number of protons.