Question #262

Even though the money multiplier found in macroeconomics textbooks is a flawed description of the way the monetary system operates, having some positive minimum reserve requirements does constrain credit creation activities of the private banks more than if you have no requirements other than the rule that balances have to be non-zero.

Answer #1798

Answer: False

Explanation

Please read - Oh no Bernanke is loose and those greenbacks are everywhere - for further guidance or ask a question in the comments section.