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

question 13

Multiple Choice

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $1,000 billion,and excess reserves total $1 billion,then the money supply is ________ billion.

• A)$10,000
• B)$4,000
• C)$1,400
• D)$10,400

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Definitions:

Proximate Cause

A legal principle that determines the primary cause or factor that led to an injury or damage, used to establish liability.

Legal Cause

A legally sufficient reason or basis for an action, behavior, or event, as recognized by law.

Cause In Fact

The actual cause or reason an event occurred, which can be determined by the "but-for" test in legal cases.

Product Liability

The legal field that holds manufacturers, distributors, suppliers, and retailers accountable for injuries caused by their products.