The Size of the Money Multiplier Is Not Fixed,but Instead

question 58

True/False

The size of the money multiplier is not fixed,but instead depends on how much of their assets banks wish to hold as reserves.

---

Definitions:

Indorser

A person or entity that signs the back of a negotiable instrument, thereby transferring ownership or guaranteeing payment to another party.

Negotiable

A term that describes the transferable nature of certain documents or instruments, such as checks, which can be legally and freely passed from one party to another.

Holder in Due Course

A party that has acquired a negotiable instrument in good faith, for value, and without notice of any defect, and thus is protected from certain defenses and claims.

Value for the Check

The amount of money represented by a check; the monetary worth or consideration for which a check is issued.