If the Desired Reserve Ratio Is Five Percent, Currency in Circulation

question 9

Multiple Choice

If the desired reserve ratio is five percent, currency in circulation is $400 billion, and chequable deposits are $800 billion, then the money multiplier is approximately ________.

• A) 2.5
• B) 2.72
• C) 2.3
• D) 0.551

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Definitions:

Integrity

This refers to the quality of being honest and having strong moral principles; moral uprightness.

Credentials

Pertains to the qualifications, achievements, personal qualities, or aspects of a person's background, typically used to indicate they are suitable for something.

Misrepresentation

The act of giving a false or misleading account of the nature of something, often leading to misunderstandings or breaches of trust.

Client's Autonomy

The right and capacity of clients to make their own decisions, respected and upheld within therapeutic and supportive relationships.