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      Question

      What is the formula for the money

      multiplier?
      A Money Multiplier = 1 / Cash Reserve Ratio (CRR) Correct Answer Incorrect Answer
      B Money Multiplier = 1 / (Cash Reserve Ratio + Excess Reserve Ratio) Correct Answer Incorrect Answer
      C Money Multiplier = 1 / (Required Reserve Ratio) Correct Answer Incorrect Answer
      D Money Multiplier = Total Money Supply / Total Bank Reserves Correct Answer Incorrect Answer

      Solution

      The correct answer is C

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