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

question 114

Multiple Choice

If the required reserve ratio is 15 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)1.67.
• C)2.3.
• D)0.651.

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Definitions:

Anthony Giddens

A contemporary sociologist known for his theory of structuration, which seeks to explain the dynamic relationship between individuals and society.

Ulrich Beck

A German sociologist best known for his theory of "risk society," highlighting the ways modern society deals with risks and uncertainties.

Zygmunt Bauman

A sociologist known for his analyses of modernity, postmodernity, and the societal impacts of globalization, consumerism, and ethics.

Eastern

Referring to the regions, cultures, or characteristics of the East, often in context of geography, like Asia, or in comparison to the Western world.