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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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