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

question 62

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 M1 money multiplier is

• A)2.5.
• B)2.8.
• C)2.0.
• D)0.7.

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Definitions:

Collective Disaster

A catastrophic event that affects a large group of people, often leading to widespread damage or suffering.

Nuclear Proliferation

The spread of nuclear weapons and nuclear technology to nations not recognized as Nuclear Weapon States by the Treaty on the Non-Proliferation of Nuclear Weapons (NPT).

Tragedy Commons

A situation in which individual users, acting independently according to their own self-interest, deplete or spoil shared resources, despite knowing that it is contrary to the group's long-term interests.

Global Grassroots

Initiatives or movements that start at the local or community level and spread across borders, focusing on global issues through bottom-up approaches.