The Simple Deposit Multiplier Is the Ratio of the Amount

question 144

Multiple Choice

The simple deposit multiplier is the ratio of the amount of

• A)new reserves created by the banks to the amount of deposits.
• B)new reserves created by the banks to the amount of loans.
• C)deposits created by the banks to the amount of new reserves.
• D)loans issued by the banks to deposits created by the banks.

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Definitions:

Increased Amounts

Refers to a quantity or volume of something becoming larger or greater than before.

Depressant

A substance that reduces arousal and stimulation in the brain, often used to treat anxiety and insomnias, such as alcohol or sedative medications.

Initial Effect

Describes the immediate impact or outcome of an event or substance on an individual or system.

BAL

Blood Alcohol Level; the measure of alcohol concentration in the bloodstream.