zriggi3314 zriggi3314
  • 21-08-2020
  • Business
contestada

Assume that the required reserve ratio is set at 0.5 . What is the value of the money (deposit) multiplier

Respuesta :

AbsorbingMan AbsorbingMan
  • 21-08-2020

Answer:

2

Explanation:

The term "reserve ratio" may be defined as the the portion of the reservable liabilities which the commercial banks must hold onto, they cannot lend this reserves out or invest this money.

Given that the required reserve ratio is 0.5

Money (deposit) multiplier = 1/Required reserve ratio = 1/0.5 = 2

Thus the money multiplier value should be 2.

Answer Link

Otras preguntas

deporte en el que se escalan montañas primera vez que se proyecta una película en el cine pasarlo bien persona que da una fiesta persona a quien no le gustan la
I Love Lucy reflected American postwar culture in that it :_________ a) Tackled issues of racial equality directly. b) Left behind the economic limits and cons
anong antas bg wika ang tamnan​
An attacking player is standing in the goal crease while the goaltender is playing the puck in the corner. Play is permitted to continue without a whistle accor
Conditions or changes in the air in a certain time and place are called climate. True False
Read the scenario, and then answer the question below. Alex has accepted an IT position at a new company, and will be leaving her current job in the IT departme
Renewable resources can never become depleted? true or false?
help please - .......TuT
pleaseeeeeeee help meeeeeee!!!
Simplify 4 + 10 ÷ (–2). Question 3 options: A) 1 B) –1 C) 7 D) –7