Which of the following is true (M = Money supply, cu = currency - deposit ratio, res = reserve - deposit ratio, BASE = monetary base)? A. M = [(cu + 1)/(cu + res)] BASE B. M = [(cu + res)/(cu + 1)] BASE C. BASE = D. BASE = [cu/(cu + 1)] M = [(cu + 1)/(cu + res)] M

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter18: Money And The Federal Reserve System
Section: Chapter Questions
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Which of the following is true (M = Money
supply, cu = currency - deposit ratio, res =
reserve - deposit ratio, BASE = monetary
base)?
A. M = [(cu + 1)/(cu + res)] BASE
B. M = [(cu + res)/(cu + 1)] BASE
C. BASE = [(cu + 1)/(cu + res)] M
D. BASE = [cu/(cu + 1)] M
Transcribed Image Text:Which of the following is true (M = Money supply, cu = currency - deposit ratio, res = reserve - deposit ratio, BASE = monetary base)? A. M = [(cu + 1)/(cu + res)] BASE B. M = [(cu + res)/(cu + 1)] BASE C. BASE = [(cu + 1)/(cu + res)] M D. BASE = [cu/(cu + 1)] M
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