Author Question: In a simplified banking system, the money multiplier falls as the required reserve ratio rises. a. ... (Read 60 times)

colton · **on:** Jun 30, 2018

In a simplified banking system, the money multiplier falls as the required reserve ratio rises.
a. True
b. False
Indicate whether the statement is true or false

Question 2

In a system in which all banks have a uniform reserve requirement, the money multiplier is equal to 1 divided by the required reserve ratio.
a. True
b. False
Indicate whether the statement is true or false