If the Required Reserve Ratio Is 5 Percent,currency in Circulation

question 34

Multiple Choice

If the required reserve ratio is 5 percent,currency in circulation is $400 billion,checkable deposits are $800 billion,and excess reserves total $0.8 billion,then the M1 money multiplier is

• A)2.5.
• B)2.72.
• C)2.3.
• D)0.551.

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Definitions:

Selective Migration

The process by which individuals choose to move to places that better match their preferences and needs, often resulting in certain demographics clustering in specific areas.

Compartmentalization

A psychological defense mechanism wherein a person separates conflicting thoughts, emotions, or experiences to avoid discomfort.

Relocation

The process of moving to a new place, often involving significant logistical, emotional, and sometimes financial considerations.

Homesteading

The practice of self-sufficiency through sustainable agriculture and home preservation of foodstuffs.