In reality, individuals do not deposit all of their cash into the banking system.
consequently,
a. the actual money multiplier is smaller than the simple money multiplier 1/rr.
b. banks will be able to lend out more cash than they would if all cash were deposited.
c. the simple money deposit multiplier is larger.
d. banks will be able to increase their deposits at the federal reserve.
e. banks must ensure that their loans only go to customers who are good credit risks.

central banks can use monetary policy to
a. decrease taxes.
b. adjust interest rates.
c. determine long-run productivity.
d. increase government spending.
e. balance government budgets.