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Author Question: Assume that banks become more conservative in their lending policies and start holding some excess ... (Read 34 times)

kamilo84

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Question 1

If the money multiplier is 8, the required reserve ratio is


◦ 8%.
◦ 12.5%.
◦ 16%.
◦ 20%.

Question 2

Assume that banks become more conservative in their lending policies and start holding some excess reserves. Compared to a situation in which banks are not holding excess reserves, the size of the money supply will be


◦ zero.
◦ larger.
◦ the same.
◦ smaller.


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Marked as best answer by kamilo84 on Apr 19, 2019

Zebsrer

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kamilo84

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Reply 2 on: Apr 19, 2019
YES! Correct, THANKS for helping me on my review


vickyvicksss

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Reply 3 on: Yesterday
Gracias!

 

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