If the Required Reserve Ratio Is 15 Percent,currency in Circulation

question 114

Multiple Choice

If the required reserve ratio is 15 percent,currency in circulation is $400 billion,checkable deposits are $800 billion,and excess reserves total $0.8 billion,then the M1 money multiplier is

• A)2.5.
• B)1.67.
• C)2.3.
• D)0.651.

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Definitions:

Impatience

A disposition toward being quickly irritated or provoked by delays or obstacles.

Perfectionism

A personality trait characterized by striving for flawlessness and setting excessively high performance standards, accompanied by overly critical self-evaluations.

Illusory Promise

A statement that appears to be a promise but does not actually bind the party to any commitment or obligation.

Promissory Estoppel

A legal principle that prevents a party from going back on a promise, even if the promise was not formally agreed upon, if the other party has relied on that promise to their detriment.