Author Question: In a simplified system where all banks have uniform reserve requirements and checkable deposits are ... (Read 86 times)

rayancarla1 · **on:** Jun 30, 2018

In a simplified system where all banks have uniform reserve requirements and checkable deposits are the only form of money, the money multiplier is equal to 1 over the required reserve ratio.
a. True
b. False
Indicate whether the statement is true or false

Question 2

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