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

question 148

Multiple Choice

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $1000 billion,and excess reserves total $1 billion,then the currency ratio is

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Definitions:

Current Liabilities

Liabilities due within a short period, typically less than a year, that are supposed to be paid out of current assets.

Debt to Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company’s assets.

Total Liabilities

This term represents the aggregate of all debts and financial obligations owed by an entity to outside parties at any given point in time.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the ownership interest of shareholders.

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