There Is $5,000,000 of Currency in Econland, All Held by Banks

question 81

Multiple Choice

There is $5,000,000 of currency in Econland, all held by banks as reserves.The public does not hold any currency.If the banks'desired reserve/deposit ratio is 0.25, then the money supply equals:

• A)$5,000,000
• B)$6,250,000
• C)$10,000,000
• D)$20,000,000

Identify and calculate interest rates in various financial contexts.

Comprehend common stock characteristics and shareholder rights.

Calculate and analyze the rate of return on financial indices and individual investments.

Understand the impact of interest rate changes on mortgage scenarios.

---

Definitions:

Transcription

The process in which the DNA sequence of a gene is copied into RNA, leading to protein synthesis in living organisms.

tRNA Triplet

A sequence of three nucleotides in transfer RNA that is complementary to the codon in messenger RNA and specifies an amino acid.

mRNA

Messenger RNA, a type of RNA that carries genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products.

5' Cap

A feature of eukaryotic mRNA consisting of a modified guanine nucleotide added to the 5' end, important for mRNA stability and translation.