QUESTION 11 11. Assuming a required reserve ratio of 10%, the simple money multiplier is QUESTION 12 12. Assuming a required reserve ratio of 20%, the simple money multiplier is QUESTION 13 13. Assuming a required reserve ratio of 5%, the simple money multiplier is QUESTION 14 14. What assets count as reserves in the American banking system? a) Government securities or bonds b) Gold c) Federal Reserve banknotes in the private bank vault d) Private Corporation bonds e) Certificates of Deposit f) Balance in the private bank's account at the Federal Reserve Bank. g) U. S. Treasury Gold Certificates.
QUESTION 11 11. Assuming a required reserve ratio of 10%, the simple money multiplier is QUESTION 12 12. Assuming a required reserve ratio of 20%, the simple money multiplier is QUESTION 13 13. Assuming a required reserve ratio of 5%, the simple money multiplier is QUESTION 14 14. What assets count as reserves in the American banking system? a) Government securities or bonds b) Gold c) Federal Reserve banknotes in the private bank vault d) Private Corporation bonds e) Certificates of Deposit f) Balance in the private bank's account at the Federal Reserve Bank. g) U. S. Treasury Gold Certificates.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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B3
![**QUESTION 11**
11. Assuming a required reserve ratio of 10%, the simple money multiplier is ____.
[Input Box]
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**QUESTION 12**
12. Assuming a required reserve ratio of 20%, the simple money multiplier is ____.
[Input Box]
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**QUESTION 13**
13. Assuming a required reserve ratio of 5%, the simple money multiplier is ____.
[Input Box]
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**QUESTION 14**
14. What assets count as reserves in the American banking system?
- [ ] a) Government securities or bonds
- [ ] b) Gold
- [ ] c) Federal Reserve banknotes in the private bank vault
- [ ] d) Private Corporation bonds
- [ ] e) Certificates of Deposit
- [ ] f) Balance in the private bank's account at the Federal Reserve Bank
- [ ] g) U. S. Treasury Gold Certificates](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fd71a05-cce6-42ce-8872-636d0d92cbc9%2F6152b5f0-f954-4aff-9f1a-f697f1dc6358%2Fnp6qhz9_processed.png&w=3840&q=75)
Transcribed Image Text:**QUESTION 11**
11. Assuming a required reserve ratio of 10%, the simple money multiplier is ____.
[Input Box]
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**QUESTION 12**
12. Assuming a required reserve ratio of 20%, the simple money multiplier is ____.
[Input Box]
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**QUESTION 13**
13. Assuming a required reserve ratio of 5%, the simple money multiplier is ____.
[Input Box]
---
**QUESTION 14**
14. What assets count as reserves in the American banking system?
- [ ] a) Government securities or bonds
- [ ] b) Gold
- [ ] c) Federal Reserve banknotes in the private bank vault
- [ ] d) Private Corporation bonds
- [ ] e) Certificates of Deposit
- [ ] f) Balance in the private bank's account at the Federal Reserve Bank
- [ ] g) U. S. Treasury Gold Certificates
Expert Solution
Step 1: Define money multiplier
The change in the quantity of deposits influences the money supply and these deposits lead to an increase in the total money supply is known as the money multiplier. The smaller money supply reflects the higher reserve ratio. Thus a small change in the monetary base changes the money supply in the economy.
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