The accompanying table gives data for a commercial bank or thrift. when the legal reserve ratio is 30 percent, the monetary multiplier is multiple choice 4. 3.33. 5. 2.5.

Question

Lailah George

Business

25 April, 07:33

The accompanying table gives data for a commercial bank or thrift. when the legal reserve ratio is 30 percent, the monetary multiplier is multiple choice 4. 3.33. 5. 2.5.

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Larry Morales · Answer 1

The monetary multiplier is the maximum amount the money supply which could be increased based on the increase in Banking system's reserve.

The formula for monetary multiplier is:

1 / Legal reserve ratio

So, Monetary multiplier:

1/30% = > 100/30 = > 3.33