The Money-Creation Multiplier Is Affected by the

question 136

Multiple Choice

The money-creation multiplier is affected by the

• A) public's demand for currency as a proportion of demand deposits.
• B) bank reserve-holding ratio as a proportion of demand deposits.
• C) rediscount rate applied to loans from the Fed to banks.
• D) both A and B are correct.

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Definitions:

Femoral Artery

A major blood vessel in the thigh that supplies blood to the lower limb.

Inferior Vena Cava

The largest vein in the human body, carrying deoxygenated blood from the lower half of the body back to the heart.

Radial Vein

A vein that runs along the radial side of the forearm and drains blood from the hand and forearm.

Renal Vein

A blood vessel that carries filtered blood away from the kidney and toward the inferior vena cava.