Author Question: Because the banking system operates using fractional reserves, a. the money multiplier is greater ... (Read 90 times)

go.lag · **on:** Jun 30, 2018

Because the banking system operates using fractional reserves,
a. the money multiplier is greater than one.
b. excess reserves are equal to zero.
c. required reserves are equal to 100 percent.
d. banks can loan out only their required reserves.
e. the money multiplier must be equal to zero.

Question 2

Total GDP is the best way to identify a less-developed country
a. True
b. False
Indicate whether the statement is true or false