Author Question: If banks cannot lend all of their excess reserves: a. the money multiplier increases. b. the money ... (Read 32 times)

big1devin · **on:** Jun 30, 2018

If banks cannot lend all of their excess reserves:
a. the money multiplier increases.
b. the money multiplier decreases.
c. the money multiplier stays the same.
d. the amount of loans by the bank increases.
e. checkable deposits decrease.

Question 2

If there is no one who is interested in borrowing from a bank:
a. the bank's excess reserves will be zero.
b. there will be no process of money creation.
c. the required reserve ratio must be equal to zero.
d. the required reserve ratio must be equal to 100 percent.