Which of the Following Would Reduce the Money Multiplier

question 320

Multiple Choice

Which of the following would reduce the money multiplier?

• A) the purchase of bonds by the Fed
• B) lowering the reserve ratio
• C) increases in the reserve ratio
• D) a flow of currency into the banking system

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Definitions:

Within

In the interior or inside part of; enclosed by or lying inside boundaries or limits.

Ecto-

A prefix meaning "outside" or "external," used in biological and medical terminology.

Out

Positioned or situated beyond the limits or confines of a specified place or area.

Outer

Referring to the external part or surface of something.