Currently,the Currency-Deposit Ratio Is 0

question 37

Multiple Choice

Currently,the currency-deposit ratio is 0.3 and the reserve-deposit ratio is 0.2.The Bank of Canada raises the reserve-deposit ratio to 0.25,as a response to a change in the public's currency-deposit ratio,to maintain the old money multiplier.What is the public's approximate new currency-deposit ratio?

• A)0.22
• B)0.25
• C)0.33
• D)0.35

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Definitions:

Statute of Limitations

A law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.

Collection Suit

A legal action taken by creditors to collect unpaid debts from a debtor through the court system.

Minor

Anyone under the age of majority—18 in most states, 21 in some jurisdictions.

Emancipated Minor

A legal status granted to individuals under 18, allowing them rights and responsibilities of legal adulthood under specific conditions.