If the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be: a. 4.00. b. 2.50. c. 0.25.

Question

2 years ago

15

d. 0.40.

1 answer:

wlad13 [49] · Answer 1 · 2023-08-19T09:35:47+03:00

If the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be: a. 4.00.

<h3>Money multiplier</h3>

Using this formula

Money multiplier=1/required reserve ratio

Where:

Required reserve ratio=25% or 0.25

Let plug in the formula

Money multiplier=1/.25

Money multiplier= 4.00

Inconclusion if the required reserve ratio is a uniform 25 percent on all deposits, the money multiplier will be: a. 4.00.

Learn more about Money multiplier here:brainly.com/question/14182201