In Australia, the Quantity of M1 Is $150 Billion, the Currency

question 114

Multiple Choice

In Australia, the quantity of M1 is $150 billion, the currency drain ratio is 33 percent of deposits and the reserve ratio is 8 percent. What is the monetary base?

• A)$46.24 billion
• B)$49.50 billion
• C)$12.00 billion
• D)$395.12 billion
• E)$39.50 billion

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Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Capital Balances

Represents the amount of money that owners have invested in a company minus any withdrawals they have made from the company.

Salary Allowances

Fixed sums or benefits paid in addition to a base salary, often determined by specific terms of employment.

Capital Accounts

Accounts that track the equity ownership of partners or shareholders in a business, reflecting contributions, withdrawals, and the share of profits or losses.