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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
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
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
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