If the Required Reserve Ratio Is 15 Percent,currency in Circulation

question 69

Multiple Choice

If the required reserve ratio is 15 percent,currency in circulation is $400 billion,checkable deposits are $1,000 billion,and excess reserves total $1 billion,then the M1 money multiplier is

• A)2.54.
• B)2.67.
• C)2.35.
• D)0.551.

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Definitions:

Structural Imaging

Medical imaging techniques, such as MRI and CT scans, used to visualize the anatomical structure of the body, particularly the brain, to diagnose or monitor disease.

Neural Activity

The electrical and chemical processes occurring within the nervous system that allow for transmission of signals between neurons.

Brain

The organ located in the head of an animal that controls its actions and thoughts, facilitating intelligence, memory, emotion, and perception.

Sensory Stimuli

External or internal inputs that affect the sensory organs leading to perception or reaction.