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:

Discriminant Analysis

A statistical technique used to classify observations into predefined categories based on several predictor variables.

Multiple Regression

A statistical technique whereby several variables are used to predict one.

Analysis of Variance

A statistical method used to compare the means of three or more samples to understand if at least one of the sample means significantly differs from the others.