If the Required Reserve Ratio Is 10 Percent,currency in Circulation

question 66

Multiple Choice

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $800 billion,and excess reserves total $0.8 billion,then the excess reserves-checkable deposit ratio is

• A)0.001.
• B)0.10.
• C)0.01.
• D)0.05.

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Definitions:

Parathyroid Glands

Small endocrine glands located in the neck behind the thyroid, which regulate calcium levels in the blood and bone metabolism.

Thyroid Gland

An endocrine gland in the neck that produces hormones regulating the body's metabolic rate, heart and digestive function, muscle control, brain development, and bone maintenance.

Poison

A substance that is capable of causing illness or death when introduced into the body.

Sugar

A sweet-tasting, soluble substance obtained from plants like sugar cane and sugar beet, used primarily as a sweetener in food and beverages.