If the Currency-Deposit Ratio Is 20%, the Reserve-Deposit Ratio Is

question 27

Multiple Choice

If the currency-deposit ratio is 20%, the reserve-deposit ratio is 10% and the stock of high-powered money is H = 400, money supply is

• A)1,000
• B)1,200
• C)1,600
• D)2,000
• E)4,000

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