Which of the following would create the most money?
(A) The initial deposit is $3,000 and the required reserve ratio is 10 percent.
(B) The initial deposit is $7,500 and the required reserve ratio is 25 percent.
(C) The initial deposit is $4,500 and the required reserve ratio is 15 percent.
(D) The initial deposit is $6,500 and the required reserve ratio is 20 percent.
Ans: (D) The initial deposit is $6,500 and the required reserve ratio is 20 percent.
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The long-run aggregate supply curve will shift to the left when
A) technology improves. B) new sources of oil are discovered. C) the price level increases. D) population decreases.
Economists refer to the general problem of ________ as a principal-agent relationshi
A) moral hazard B) adverse selection C) negative externalities D) pecuniary externalities