Which of the following statements is correctA.The money supply is equal to the circulating currency plus deposit reserves.B.The currency multiplier is equal to the cash deposit ratio divided by the reserve deposit ratio.C.The cash deposit ratio is equal to the currency in circulation divided by the deposit.D.The monetary base is equal to the currency in circulation plus deposits.

In country A,  the currency-deposit ratio is 0.6 and the reserve-deposit ratio is 0.2,What is the money multiplier?  If the monetary base is ＄1000, What is the money supply?A.m=2; M=＄2000B.m=0.8; M=＄800C.m=1.6; M=1600D.m=2; M=＄1800

Which statement is true?This is a multi answer question. You can select one or more options as the answer.A.Money multiplier(m) can be equal to 1.B.Money supply (M) will decrease as Currency-deposit ratio (cr) increases.C.Money supply (M) will increase as Reserve-deposit ratio (rr) increases.D.Reserve-deposit ratio (rr) depends on households’ preferences.

If there is an economy’s monetary base is $1000 m, and the reserve-deposit ratio (rr) is 0.35. suppose people hod 1/5 of their money as currency and deposit 4/5 at banks. Then what are the currency -deposit ratio and money supply?A.0.2   2180B.0.25   2270C. 0.8        1570D.0.25  454

The simple money multiplier isGroup of answer choicesthe reciprocal of the required reserve ratio.always 1.the same as the required reserve ratio.different from bank to bank even if the required reserve ratio is the same for all banks.

If the currency-depoist ratio equals 0.5 and the reserve-depoist ratio equals 0.1,then the money multiplier equals: