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Money Supply Quiz

The money multiplier shows:

The money multiplier is:

Suppose that C/D = .6, rD=15%, and ER/D=5%. If the monetary base falls by $100, when the banking system returns to equilibrium,

Which of the following will increase the money multiplier?

The non-borrowed monetary base is calculated as:

The money supply increases with:

Historically, the primary determinant of the money supply is:

During the Great Depression the money supply ________ because the currency ratio {C/D} ________ and the excess reserves ratio {ER/D} ________.

If the Federal Reserve purchases securities, and the buyers convert the proceeds of the sale into currency

If the Fed increases the volume of discount loans

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