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

question 193

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 excess reserves-checkable deposit ratio is

• A)0.01.
• B)0.10.
• C)0.001.
• D)0.05.