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

question 157

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 currency-deposit ratio is

• A)0.25.
• B)0.50.
• C)0.40.
• D)0.05.

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Definitions:

External Equity

Refers to an organization’s compensation strategy being competitive with what other employers offer for similar jobs in the market.

Wage Curve

A graphical representation showing the relationship between the wage rate and the level of unemployment in an economy.

Relative Worth

The perceived value or importance of something in comparison to other items or factors.

Wage Rates

The fixed amount of compensation paid to an employee per unit of time, often per hour or day.