Which statement is true?This is a multi answer question. You can select one or more options as the answer.A.Money multiplier(m) can be equal to 1.B.Money supply (M) will decrease as Currency-deposit ratio (cr) increases.C.Money supply (M) will increase as Reserve-deposit ratio (rr) increases.D.Reserve-deposit ratio (rr) depends on households’ preferences.

Which of the following statements is correctA.The money supply is equal to the circulating currency plus deposit reserves.B.The currency multiplier is equal to the cash deposit ratio divided by the reserve deposit ratio.C.The cash deposit ratio is equal to the currency in circulation divided by the deposit.D.The monetary base is equal to the currency in circulation plus deposits.

What happens when the currency-deposit ratio rises?This is a multi answer question. You can select one or more options as the answer.A.Money multiplier (radio of Money supply and the monetary base) rises.B.Money multiplier (radio of Money supply and the monetary base) declines.C.Money supply rises.D.Money supply declines.

Suppose a country's reserve-deposit ratio (rr) increases and its monetary base (B) remains constant.Briefly answer the following questions.a. What is the impact on the money multiplier (m)? (1 mark)b. What is the impact on the money supply (M)? (1 mark)c. Suggest one policy the country's central bank can implement to counter the impact of the reserve-deposit ratio change on money supply. The suggested policy must change the country's monetary base (B). (1 mark)

In the fictional country of Econland, the central bank reports certain monetary statistics for two consecutive years. In Year 1, the monetary base is $10 billion, the currency-deposit ratio is 0.3, and the reserve-deposit ratio is 0.2. In Year 2, the monetary base increases to $12 billion, and the currency-deposit ratio rises to 0.4, while the reserve-deposit ratio remains unchanged. Given this information, which of the following statements are true? (Select all that apply.)This is a multi answer question. You can select one or more options as the answer.A.The amount of currency in Year 1 is $3 billion.B.The money supply in Year 1 is greater than $40 billion.C.The increase in the monetary base from Year 1 to Year 2 is 20%.D.The money supply in Year 2, given the changes in the monetary base and currency-deposit ratio, is less than $30 billion.E.The reserve amount in Year 2 is greater than $2.4 billion.

Which of the following changes would be the mostlikely to reduce the size of the money multiplier?a. a decrease in the required reserve ratiob. a decrease in excess reservesc. an increase in cash holding by consumersd. a decrease in bank runse. an increase in deposit insurance