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Natalka [10]
3 years ago
5

If the required reserve ratio is 15 percent, the simple deposit multiplier is:_____

Mathematics
1 answer:
Romashka [77]3 years ago
4 0

Answer:

C. 6.67

Step-by-step explanation:

Given

Reserve Ratio (RR) = 15%

Required

Determine the simple deposit multiplier

Simple deposit multiplier (M) is calculated by taking the inverse of RR.

The following formula applies:

M = \frac{1}{RR}

Substitute 15% for RR

M = \frac{1}{15\%}

Convert 15% to decimal

M = \frac{1}{0.15}

M=6.67

<em>Hence, option C answers the question</em>

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Answer:

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