If the banks in an economy operate with a reserve ratio of 20 percent then the money multiplier is ?

Related Mcqs:

Which one of the following is not true ?

A. The difference between the price at which commercial bank sells an asset to the central bank and the price it agrees to buy it back can be expressed as an annualized percentage of the selling price and this is called the refinancing rate B. Commercial banks may borrow from and lend to each other … Which one of the following is not true ?Read More...

An increase in the money supply aimed at increasing aggregate output is referred to as ?

A. contractionary fiscal policy B. expansionary monetary policy C. contractionary monetary policy D. expansionary fiscal policy...

When real income increases other things equal we can expect the demand for real money holdings to ?

A. fall B. not change C. increase D. None of these...

The three main tools of monetary policy are ?

A. fiat, commodity and deposit money B. Open-market operations reserve requirements and the refinancing rate C. The money supply, government purchases and taxation D. Government expenditures taxation and reserve requirements E. Coin, currency and demand deposits...

The interest rate is determined in ?

A. the money and labor markets B. the goods and labor markets C. the goods market D. the money markets...