If the Desired Reserve Ratio Is Ten Percent, Currency in Circulation

question 134

Multiple Choice

If the desired reserve ratio is ten percent, currency in circulation is $400 billion, chequable deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply is ________.

• A) $8000 billion
• B) $1200 billion
• C) $120 billion
• D) $8400 billion

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Definitions:

Global Competition

Refers to the dynamic and competitive environment where businesses from different countries vie for consumers in international markets.

Coca-Cola

An American multinational beverage corporation known for its flagship product, a carbonated soft drink named after the company.

Pepsi-Cola

A globally recognized brand of carbonated soft drink manufactured by PepsiCo.

Soft Drink Industry

The soft drink industry encompasses companies and activities involved in producing, marketing, and selling non-alcoholic, typically carbonated beverages like sodas and fruit-flavored drinks.