Use the Following Table to Answer the Questions : Table9

question 69

Multiple Choice

Use the following table to answer the questions : Table9.2:

-Complete Table 9.2.(Data are expressed in billions of dollars. ) Given the information in Table 9.2,saving equals investment at an income of

• A)$500 billion.
• B)$600 billion.
• C)$700 billion.
• D)$800 billion.

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Definitions:

Required Reserves

The dollar amount of reserves a bank is obligated by regulation to hold as cash in the bank’s vault or on account at the Fed.

Checkable Deposits

Bank accounts on which checks can be drawn. These include checking accounts and demand deposits that allow owners to write checks against their account balances.

Excess Reserves

Funds that banks hold over and above the regulatory requirement, which can influence the bank's ability to lend and the overall money supply.

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out, set by the central bank.