The multiple by which total deposits can increase for every pound increase in reserves is the ? Options: A . &nbspMoney multiplier B . &nbspliquidity ratio C . &nbspbank’s line of credit D . &nbsprequired reserve ratio

The multiple by which total deposits can increase for every pound increase in re

Question - The multiple by which total deposits can increase for every pound increase in reserves is the ?

Options:

A . Money multiplier

B . liquidity ratio

C . bank’s line of credit

D . required reserve ratio

Answer: Option A
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