Suppose That a Country Has $50 Billion in Bank Reserves

question 70

Multiple Choice

Suppose that a country has $50 billion in bank reserves, $100 billion in currency held by the public, and $500 billion in bank deposits.The currency drain ratio is

• A)30%.
• B)10%.
• C)50%.
• D)20%.
• E)18%.

---

Definitions:

Conspicuous Consumption

The spending of money on and the acquisition of luxury goods and services to publicly display economic power, status, or wealth.

Prestige And Status

Recognition and respect received from others based on achievements, position, or quality of character, which often influences social ranking.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to an interconnected world.

Worldwide Economic System

Refers to the global network of economic activities, trade, and financial systems that link national economies into an interdependent global economy.