5- The money multiplier- - Will be equal to 10 if the reserve ratio is.pdf

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5. The money multiplier: - Will be equal to 10 if the reserve ratio is five percent - Is zeero under fractional reserve banking - Prevents commercial banks from creating money - Will be 5 if the reserve ratio is 20% 6. Fractional reserve banking: - Is an inherently stable form of banking - Enables banks to lend to depositors - Enables banks to lend out a percentage of bank deposits - Is illegal in the United States.

$5. The money multiplier: - Will be equal to 10 if the reserve ratio is five percent - Is zeero under fractional reserve banking - Prevents commercial banks from creating money - Will be 5 if the reserve ratio is 20% 6. Fractional reserve banking: - Is an inherently stable form of banking - Enables banks to lend to depositors - Enables banks to lend out a percentage of bank deposits - Is illegal in the United States$

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