Purchase Solution

deposit multiplier question

Not what you're looking for?

Ask Custom Question

If banks hold a 30 percent reserve ratio, an initial increase in bank reserves of $30 will lead to an eventual:

A) increase in the money supply of $180.
B) increase in the money supply of $90.
C) increase in the money supply of $100.
D) increase in loans of $100.
E) increase in loans of $90.

Purchase this Solution

Solution Summary

A deposit multiplier question is solved.

Solution Preview

This is a deposit multiplier question:
Deposit multiplier = 1 / Reserve ...

Purchase this Solution

Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.