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:

Restrictive Policy

A policy intended to limit or regulate certain activities, often used in the context of fiscal or monetary policy to control economic variables.

Wages

Payments made by employers to employees, usually at hourly, daily, or piecework rates, for the labor or services provided.

Source Of Cash

Activities or transactions that increase the available cash in an organization, such as sales, issuing bonds, or taking out loans.

Lost Customer Goodwill

Refers to the adverse impact on a company's brand reputation or customer loyalty due to negative experiences or dissatisfaction.