As the required reserve ratio is decreased the money multiplier ?

Related Mcqs:

A checking deposit in a bank in considered _________ of that bank?

A. an asset B. capital C. net worth D. a liability...

If the central bank increases the money supply at the same time as the government increasing spending, it is suggested that investment will ?

A. Suffer even more B. not be reduced as much as it would have been C. be replaced by foreign investment D. be replaced by consumer spending...

Commodity money ?

A. has no intrinsic value B. has intrinsic value C. is used exclusively in the economies of western Europe and north America D. is used as reserves to back fiat money...

Which of the following events will lead to a decrease in the equilibrium interest rate ?

A. A sale of government securities by the central bank B. An increase in the level of aggregate output C. An increase in the discount rate D. A decrease in the price level...

Banks create money by ?

A. printing it B. issuing debit cards C. accepting cheques D. lending out part of their deposits...