the economics of money, banking, and financial markets

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11. 
    

    If the desired reserve ratio is 10 percent, the simple deposit multiplier is ____.
    A) 5.0
    B) 2.5
    C) 100.0
    D) 10.0
    Answer: D
    Diff: 1 Type: MC Page Ref: 388
    Skill: Applied
    Objective List: 16.4 Utilize a simple model of multiple deposit creation, showing how the
    central bank can control the level of deposits by setting the level of reserves

    
    


12. 
    

    If the desired reserve ratio is 15 percent, the simple deposit multiplier is ____.
    A) 15.0
    B) 1.5
    C) 6.67
    D) 3.33
    Answer: C
    Diff: 1 Type: MC Page Ref: 388
    Skill: Applied
    Objective List: 16.4 Utilize a simple model of multiple deposit creation, showing how the
    central bank can control the level of deposits by setting the level of reserves

    
    


13. 
    

    If the desired reserve ratio is 20 percent, the simple deposit multiplier is ____.
    A) 5.0
    B) 2.5
    C) 4.0
    D) 10.0
    Answer: A
    Diff: 1 Type: MC Page Ref: 388
    Skill: Applied
    Objective List: 16.4 Utilize a simple model of multiple deposit creation, showing how the
    central bank can control the level of deposits by setting the level of reserves

    
    


14. 
    

    If the desired reserve ratio is 25 percent, the simple deposit multiplier is ____.
    A) 5.0
    B) 2.5
    C) 4.0
    D) 10.0
    Answer: C
    Diff: 1 Type: MC Page Ref: 388
    Skill: Applied
    Objective List: 16.4 Utilize a simple model of multiple deposit creation, showing how the
    central bank can control the level of deposits by setting the level of reserves