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

question 62

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 M1 money multiplier is

• A)2.5.
• B)2.8.
• C)2.0.
• D)0.7.

---

Definitions:

Valproate

A medication used to treat epilepsy and bipolar disorder, as well as to prevent migraine headaches.

Tegretol

A medication primarily used to treat seizure disorders, bipolar disorder, and trigeminal neuralgia.

Depression

A syndrome in mental health where there's a persistent state of sorrow or lack of joy in actions, leading to significant life impairment.

Latinos

Refers to individuals from Latin American countries or of Latin American descent.