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

question 178

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 monetary base is

• A)$400 billion.
• B)$401 billion.
• C)$500 billion.
• D)$501 billion.

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Definitions:

German Lines

Refers to the positions or territories controlled by German military forces, often mentioned in historical contexts like WWI and WWII.

German Propaganda

Information, especially of a biased or misleading nature, used to promote a political cause or point of view by Germany.

NAACP

The National Association for the Advancement of Colored People, a civil rights organization in the United States formed in 1909 to fight for justice for African Americans.

Black Officer

A term referring to military or police officers who are of African descent.