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

question 13

Multiple Choice

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $1,000 billion,and excess reserves total $1 billion,then the money supply is ________ billion.

• A)$10,000
• B)$4,000
• C)$1,400
• D)$10,400

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Definitions:

Deliberative Processes

A method of collective decision-making in which participants engage in careful discussion and consideration of issues, options, and their implications before reaching a decision.

Human-Brain Activity

The processes and functions of the brain, including cognitive and neurological activities, that enable consciousness, perception, thinking, judgement, and memory.

Unconscious Intuition

The process of understanding or making decisions without the awareness of the reasoning behind them.

Conscious Deliberation

The process of carefully considering or thinking about something in a systematic way.