econ 2006 ce MC Q37

A. (wrong)
max. banking multiplier is determined by required reserve ratio(R.R.R.).
as the R.R.R. dont change, max banking multiplier wont change

B.(correct)
more cash leakage --- less reserve -----max. amount of deposits will fall

C.(wrong)
not necessarily fall.
if banks hold excess reserve,
then loans will be made out of the excess reserve only without using loans
as a result,
the withdrawal of deposots only cause the reserve and the deposis at the same magnitude.

D.(wrong)
base on C and refer to C