Business, 06.08.2019 22:20 joelpimentel

Which of the following assumptions is necessary for the simple money multiplier to be applicable? banks hold no excess reserves. the fed has set the required reserve ratio to between 5% and 10%. banks have perfect information about the creditworthiness of all borrowers. if the correct assumption did not hold, the change in the money supply would be than you previously found. which of the following describes why this holds true? banks would make fewer loans than they would if they could perfectly observe borrowers' true riskiness. if banks held excess reserves, they would make fewer loans. the multiplier only holds as long as the required reserve ratio is less than 15%.

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Which of the following assumptions is necessary for the simple money multiplier to be applicable? b...