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

question 178

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 monetary base is

• A)$400 billion.
• B)$401 billion.
• C)$500 billion.
• D)$501 billion.

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Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Gender

Social and cultural distinctions associated with being male or female, as opposed to biological differences.

Main Effects

The individual impact of each independent variable on the dependent variable in an analysis.

Independent Variables

Factors or conditions in an experiment that are manipulated by the researcher to study their effects on the dependent variables.