17. The money multiplier is a. The reciprocal of the required reserve ratio. b. Always 1. c. The same as the required reserve ratio. d. Different from bank to bank even if the required reserve ratio is the same for all banks. 18. If reserves increase by $4 million and the required reserve ratio is 20%, what is the resulting change in checkable deposits (or the money supply) a. $2 million b. $20 million c. $5 million d. 550 million 28. Bank A has checkable deposits of $800,000 and total reserves of $200,000. If the required reserve ratio is 0.10, the bank has required reserves of a. $600,000. b. 580,000. C. $100,000. d. $20,000. 29. Velocity equals GDP the money supply. a. Plus b. Multiplied by c. Divided by d. Minus 32. Which of the following will increase the money supply? a. Increasing the required reserve ratio b. An open market sale c. Raising the discount rate relative to the federal funds rate d. None of the above 33. A required reserve ratio of 20 percent gives rise to a simple money multiplier of a. 20. b 10. c 5