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Which of the following scenarios would cause the money multiplier to be smaller than predicted by the calculation below? [dfrac{1}{text{reserve ratio}}] Choose 1 answer: Choose
Which of the following scenarios would cause the money multiplier to be smaller than predicted by the calculation below? \[\dfrac{1}{\text{reserve ratio}}\] Choose 1 answer: Choose 1 answer: (Choice A) Banks use fractional reserve banking. A Banks use fractional reserve banking. (Choice B) Banks count loans as assets. B Banks count loans as assets. (Choice C) Banks count deposits as liabilities. C Banks count deposits as liabilities. (Choice D) Banks hold excess reserves. D Banks hold excess reserves. (Choice E) People keep all of their money in banks instead of holding cash. E People keep all of their money in banks instead of holding cash
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