If Currency Held by the Public Equals $100 Billion, Reserves

question 43

Multiple Choice

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the monetary base equals:

• A) $50 billion.
• B) $100 billion.
• C) $150 billion.
• D) $600 billion.

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Definitions:

Operating Agreement

An agreement containing various rights, provisions, and powers that aid in establishing the bylaws of an LLC.

Legal Rights

Rights bestowed upon individuals or entities by the law, protecting their interests and enforcing duties upon others.

Asset Acquisition

The purchase of all the property of a corporation by another corporation.

Board Of Directors

A group of individuals elected by the shareholders of a corporation to oversee the management and make major decisions about the company's policies and strategies.