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if the required reserve ratio is 6%, what is the value of the simple deposit multiplier? please round to 2 decimal places.

User Bitta
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Final answer:

When the required reserve ratio is 6%, the value of the simple deposit multiplier is calculated as 1 divided by 0.06. The result is approximately 16.67, rounded to two decimal places.

Step-by-step explanation:

If the required reserve ratio is 6% (or 0.06), the simple deposit multiplier can be calculated using the formula: 1 divided by the reserve ratio. So, we take 1 divided by 0.06. This calculation will provide us with the simple deposit multiplier's value.

Performing the calculation: 1 / 0.06 = approximately 16.67 (rounded to two decimal places).
Therefore, the value of the simple deposit multiplier, when the reserve ratio is 6%, is 16.67.

User Viks
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