If the Desired Reserve Ratio Is One-Third, Currency in Circulation

question 49

Multiple Choice

If the desired reserve ratio is one-third, currency in circulation is $300 billion, and chequable deposits are $900 billion, then the money multiplier is approximately ________.

• A) 2.5
• B) 2.8
• C) 2.0
• D) 0.67

---

Definitions:

Demoralize

To undermine the confidence, spirits, or discipline of an individual or group, often through continuous failure or frustration.

Technical Skill

The ability to perform tasks that require specific knowledge, often related to practical use of tools, machines, techniques, or systems.

Ability Factor

An individual's innate or acquired capability to perform specific tasks or activities successfully.

Goals and Expectations

The objectives and standards set by an individual or organization, outlining desired achievements and performance levels.