If R Represents the Reserve Ratio for All Banks in the Economy,then

question 30

Multiple Choice

If R represents the reserve ratio for all banks in the economy,then the money multiplier is

• A)1/(1-R).
• B)1/R.
• C)1/(1+R).
• D)(1+R)/R.

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Definitions:

Paid-in-Full Check

A paid-in-full check is a check by which the issuer intends to settle a debt completely, often accompanied by a statement indicating that the payment is meant to resolve the obligation in full.

Different Performance

Fulfillment of contractual obligations in a manner that is different from what was specifically agreed upon, sometimes acceptable with mutual consent.

Original Duty

The fundamental obligation or responsibility that a party has in a contractual or legal relationship.

Enforce

To compel obedience or compliance through legal or authoritative means; to ensure the fulfillment of a requirement.