If the currency drain is 0.2 and the desired reserve ratio is 0.03, the money multiplier is
A) 0.76.
B) 6.67.
C) 3.23.
D) 4.46.
E) 5.22.
Correct Answer:
Verified
Q242: A currency drain is
A)an increase in currency
Q244: A-1 bank initially has no excess reserves.If
Q251: If the money multiplier is 3.0,a $1,000
Q255: The Fed buys $50,000 of government securities.The
Q256: The number by which a change in
Q260: Suppose the currency drain is 25 percent
Q261: Which of the following reduces the money
Q262: The quantity of money decreases if
A) the
Q264: An increase in the currency drain
A) decreases
Q291: If the monetary base does not change
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