- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 12. Monetary and Fiscal Policy
- Subject 1. What is Money?
CFA Practice Question
The change in the quantity of money that results from a given change in the monetary base is determined by the ______.
A. currency drain
B. reserve ratio
C. money multiplier
User Contributed Comments 2
| User | Comment |
|---|---|
| tung | but you missed "required". required reserve ratio is different from reserve ratio. |
| mstroh314 | But money multiplier = 1/required reserve ratio. So isn't it determined by both? |