If the Required Reserve Ratio Is 10 Percent,currency in Circulation

question 37

Multiple Choice

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $800 billion,and excess reserves total $0.8 billion,then the currency-deposit ratio is

• A)0.25.
• B)0.50.
• C)0.40.
• D)0.05.

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Definitions:

Physiological Psychologists

Scientists who study the biological basis of behavior, focusing on the brain and nervous system.

Human Behavior

The range of actions and behaviors exhibited by humans, influenced by culture, attitudes, emotions, values, ethics, and genetics.

Action Potential

A brief electrical impulse that represents the fundamental mechanism for communication within and between neurons.

Axon

A thin, extended part of a neuron responsible for transmitting electrical signals from the neuron’s cell body to other neurons or muscles.