In Macroland There Is $10,000,000 in Currency

question 74

Multiple Choice

In Macroland there is $10,000,000 in currency.The public holds half of the currency and banks hold the rest as reserves.If banks'desired reserve/deposit ratio is 10%, deposits in Macroland equal ______ and the money supply equals _______.

• A)$50,000,000; $60,000,000
• B)$55,000,000; $55,000,000
• C)$50,000,000; $55,000,000
• D)$100,000,000; $100,000,000

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing companies to better forecast costs and revenues.

Personnel Expenses

Costs associated with employing staff, including wages, benefits, and training costs.

Planning Budget

A financial plan that estimates the revenue and expenses for a specific period in the future, often used for setting financial goals.

Administrative Expenses

Overhead costs related to the general operation of a company, such as salaries of executive personnel, office supplies, and utilities.