1) The formula for the simple deposit multiplier can be expressed as

A) ?R = 1r ?T

B) ?D = 1r ?R

C) ?r = 1R ?T

D) ?R = 1r ?D

2) In the simple model of multiple deposit creation in which banks do not hold excess reserves, the increase in checkable deposits equals the product of the change in excess reserves and the

A) reciprocal of the excess reserve ratio.

B) simple deposit expansion multiplier.

C) reciprocal of the simple deposit multiplier.

D) discount rate.

3) The simple deposit multiplier can be expressed as the ratio of the

A) change in reserves in the banking system divided by the change in deposits.

B) change in deposits divided by the change in reserves in the banking system.

C) required reserve ratio divided by the change in reserves in the banking system.

D) change in deposits divided by the required reserve ratio.

4) If reserves in the banking system increase by $100, then checkable deposits will increase by $1000 in the simple model of deposit creation when the required reserve ratio is

A) 0.01.

B) 0.10.

C) 0.05.

D) 0.20.

5) If reserves in the banking system increase by $100, then checkable deposits will increase by $500 in the simple model of deposit creation when the required reserve ratio is

A) 0.01.

B) 0.10.

C) 0.05.

D) 0.20