4. Which of the following changes would "be the most likely to reduce the size of the money multiplier? ' a decrease in the required reserve ratio a decrease in excess reserves an increase in cash holding by consumers a decrease in bank runs an increase in deposit insurance 9-519 9\"! S. The monetary base equals a. currency in circulation. b. bank reserves. c. currency in circulation - bank reserves. d. currency in circulation + bank reserves. e. currency in circulationfbank reserves. 6. If a bank has $100,000 in deposits and holds $5,000 in required reserves, what is the value of the money multiplier? a. 0.05 b. 0.5 c. 5 d. 20 e. 50 7. If the reserve ratio is 10% and excess reserves increase by 81,000, What is the maximum possible increase in checkable deposits throughout the banking system? a. $0 [3. $100 $1,000 . $10,000 c d e $100,000 TACKLE THE AP TEST: Free-Response Questions 1. How will each of the following affect the money supply through the money multiplier process? Explain. a. People hold more cash. 13. Bani-rs hold more excess reserves. c. The Fed increases the required reserve ratio. a. . . .4 ____. . .4