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If the federal reserve sets the reserve rate to 5.5 the resulting money multiplier is rounded to two decimal places?
Wiki User
∙ 6y ago
20
wrong! its 50-apex 100 % sure:)
Wiki User
∙ 11y ago
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If the Federal Reserve sets the reserve rate to 5 what is the resulting money multiplier?
100
If the federal reserve sets the reserve rate to 4 what is the resulting money multiplier?
it is 25 apex
Which of the monetary policy tools can alter both the level of excess reserve and the money multiplier?
the federal funds rate
The money multiplier formula shows the effects of?
The money multiplier formula shows the effects of the Federal Reserve discount rate. It does not show a money supply or low interest rates on creditors over a period of time.
Why can't you have a money multiplier of inifinity?
The money multiplier is the reciprocal of the reserve requirement, which can only be a finite number.
If the Federal Reserve sets the reserve rate to 5 what is the resulting money multiplier?
100
If the federal reserve sets the reserve rate to 4 what is the resulting money multiplier?
it is 25 apex
What does multiplier effect mean?
The multiplier effect describes how an increase in some economic activity starts a chain reaction that generates more activity than the original increase. The multiplier effect demonstrates the impact that reserve requirements set by the Federal Reserve have on the U.S. money supply.
Which of the monetary policy tools can alter both the level of excess reserve and the money multiplier?
the federal funds rate
What is the relationship between the monetary multiplier and reserve ratios?
Money Multiplier is inverse of Reserve Requirement. That is, m = 1/R
The money multiplier formula shows the effects of?
The money multiplier formula shows the effects of the Federal Reserve discount rate. It does not show a money supply or low interest rates on creditors over a period of time.
What happens to the credit multiplier when the cash reserve ratio is increased?
The credit multiplier decreases.
Why can't you have a money multiplier of inifinity?
The money multiplier is the reciprocal of the reserve requirement, which can only be a finite number.
What government agency conducts monetary policy in the United States?
The Federal Reserve is responsible for managing the money supply in the U.S.
What was the singular achievement of the Federal Reserve Act?
Establishing the Federal Reserve was the singular achievement of the Federal Reserve Act.
When was the federal reserve established?
The Federal Reserve was created in 1913
How many federal reserve districts did the Federal Reserve Act divide the US into?
There are twelve Federal Reserve districts in the U.S.
