If the desired reserve ratio of a banking system is 10%, and there is a currency drain of 10%, what is the size of its money multiplier? a) zero b) 5.5 c) 6.7 d) 20 e) 10
If the desired reserve ratio of a banking system is 10%, and there is a currency drain of 10%, what is the size of its money multiplier? a) zero b) 5.5 c) 6.7 d) 20 e) 10
Chapter19: Money Creation
Section: Chapter Questions
Problem 7SQ
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If the desired reserve ratio of a banking system is 10%, and there is a currency drain of 10%, what is the size of its money multiplier?
a) zero
b) 5.5
c) 6.7
d) 20
e) 10
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