Question: I have completed a question on the changes in the excess reserves ratio. Am I correct? 8. Changes in the excess reserves ratio Suppose the

I have completed a question on the changes in the excess reserves ratio. Am I correct?

8. Changes in the excess reserves ratio Suppose the value of the excess reserves ratio decreases. Then the money supply multiplier will Which of the following can explain a decrease in the excess reserves ratio? Underdeveloped financial markets Public mistrust of banks A credit crunch A relatively large volume of cash transactions A relatively small volume of cash transactions

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