If the Reserve Requirement Is 33

question 42

Multiple Choice

If the reserve requirement is 33.3 percent, what is the approximate value of deposit expansion multiplier?

• A)3.33
• B)3
• C)0.33
• D)0.667
• E)1.5

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Definitions:

Petty Cash Fund

A small amount of cash kept on hand for minor, incidental expenses.

Replenishment

The process of replenishing inventory or stock to ensure that the optimal inventory level is maintained.

Auxiliary Petty Cash Record

A detailed ledger used to track the small cash expenditures handled through a petty cash fund.

Office Expense

Costs associated with the day-to-day operations of an office, including supplies, utilities, and administrative salaries.