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X Question 5 0 points The money multiplier represents the amount that the money supply will increase or decrease given a change in excess reserves.

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X Question 5 0 points The money multiplier represents the amount that the money supply will increase or decrease given a change in excess reserves. XO A. exact O B. minimum O c. maximum D. Neither the exact, the minimum, nor the maximum. The money multiplier does not affect the money supply. E. None of the above.M2 includes all the following except: A. Currency. B. Large time deposits. XO C. Money market mutual funds. D. M1. O E. Checking accounts. X IncorrectFractional reserve banking means banks hold on to only a small fraction of the deposits they receive, loaning out the rest. This type of system will fall apart if: A. If people fail to repay loans and if everyone demands their deposits at the same time. B. Everyone demands the deposits in cash at the same time. C. People fail to repay the loans the banks make. X O D. All of these will cause fractional reserve banking to fail. E. There is no central bank. X Incorrect PREVIOUS CONTINUE

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