The Higher the Required Reserve Ratio

question 27

Multiple Choice

The higher the required reserve ratio,

• A)the larger the money multiplier
• B)the smaller the money multiplier
• C)the more excess reserves there are after each round of the money-creation process
• D)the more money that can be lent in each round of the money-creation process
• E)the fewer required reserves after each round of the money-creation process

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