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Money Creation by Banks · Question 32 of 58

Question 32

EasyOriginal question

If the reserve ratio is 5%, the money multiplier is

0.05Correct answerYour answer5Correct answerYour answer20Correct answerYour answer95Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer C

Correct answer: C

1 ÷ 0.05 = 20.

Concept: Calculating the multiplier
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsThe money multiplier

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