If the Monetary Base Equals $400 Billion and the Money

question 118

Multiple Choice

If the monetary base equals $400 billion and the money multiplier equals 2, then the money supply equals:

• A) $200 billion.
• B) $400 billion.
• C) $800 billion.
• D) $1,000 billion.

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Definitions:

Acknowledgment

The official recognition by a notary public that another’s signature was made by that party’s free will. The acknowledgment is accomplished when the notary has signed the document and added the official seal to it.

Cyber-Agreement

A contract or agreement formed and existing in a digital format, often executed online.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the laws across the states.

Written Agreement

A documented pact between two or more parties, which is enforceable by law, detailing the terms and conditions of a particular transaction or arrangement.