If the Desired Reserve Ratio Were 15 Percent, the Value

question 67

Multiple Choice

If the desired reserve ratio were 15 percent, the value of the monetary multiplier would be:

• A)5.50.
• B)6.67.
• C)7.32.
• D)8.54.

---

Definitions:

Savings Account

A bank account that earns interest on the deposited funds, offering a safe way to save money for future use.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage.

Economic Profit

The difference between a firm's total revenue and its opportunity costs, including both explicit and implicit costs.

Savings Account

A deposit account held at a bank or financial institution that provides principal security and a modest interest rate.