When Currency Is Equal to $200 Billion and Reserves Are

question 163

Multiple Choice

When currency is equal to $200 billion and reserves are equal to $350 billion, and we know that the money multiplier is equal to 1.5, then the money supply will be equal to ________.

• A) $825 billion
• B) $225 billion
• C) $366.66 billion
• D) $500 billion

---

Definitions:

Posterior Side

The back or rear part of the body or an object, opposite of anterior.

Agonist

A substance that binds to a receptor and activates it, often mimicking the action of a naturally occurring substance.

Antagonist

A substance that impedes or counteracts the action of another, especially a muscle that opposes the action of another muscle.

Synaptic Knob

The part of a neuron that releases neurotransmitters to transmit signals to another neuron or muscle cell.