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Author Question: Assume the banking system is 'closed' (all deposits are made in the banking system). The liquidity ... (Read 51 times)

vinney12

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Question 1

The ratio of cash and other assets that can be readily turned into cash to the total of deposits is the
◦ money multiplier.
◦ credit limit.
◦ liquidity ratio.
◦ none of the above.

Question 2

Assume the banking system is 'closed' (all deposits are made in the banking system). The liquidity ratio is 25%. If a new deposit of is made, total deposits can increase by
◦ £50 000.
◦ £10 000.
◦ £40 000.
◦ £25 000.


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Marked as best answer by vinney12 on May 25, 2020

Jbrasil

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vinney12

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Reply 2 on: May 25, 2020
YES! Correct, THANKS for helping me on my review


steff9894

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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