QUESTION 3 The credit multiplier is the process where: O a. Banks lend excessively due to their ability to create credit and benefit from leverage O b. Where every new deposit can be then lent out by the bank up to 100% of the deposit O c. Where banks multiply their lending through short term securities transactions Od. Where banks ability to create credit depends on their reserve ratios QUESTION 4 If the reserve ratio set by the regulators decreases then banks will be able to lend out: pa. less b. more ac depends on bank liquidity Oda and