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

question 220

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 money supply is ________ billion.

• A) $8000
• B) $1200
• C) $1200.8
• D) $8400

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Definitions:

Second Only

Indicates that something is immediately after the first in position, importance, or rank, often used to denote a high level of status or quality next to the top-ranking position.

Obsessions

Persistent, intrusive, and unwanted thoughts or urges that cause distress or anxiety.

Repetitive Behaviours

Actions or rituals that are performed the same way repeatedly, often observed in various psychological conditions.

Intrusive Thoughts

Unwanted and often distressing thoughts, images, or ideas that suddenly appear in a person's mind.