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

question 66

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 excess reserves-checkable deposit ratio is

• A)0.001.
• B)0.10.
• C)0.01.
• D)0.05.

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Definitions:

Supervisors

Individuals within an organization responsible for overseeing the work of employees and ensuring tasks and goals are achieved.

Utilitarian Rule

A principle that dictates choosing actions that maximize happiness or benefit to the greatest number of people.

Greatest Good

A principle suggesting that actions should be evaluated based on their ability to produce the maximum amount of happiness or benefit for the greatest number of people.

Trap Of Rationalization

The justification of questionable behavior with seemingly reasonable excuses, obscuring true motives or flaws.