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

question 152

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 currency ratio is ________.

• A) .25
• B) .50
• C) .40
• D) .05

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Definitions:

Technology

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The process of structuring an organization's strategy, roles, responsibilities, and processes to achieve its goals and objectives effectively.

Analyzability

The extent to which a problem or system can be understood and examined through logical investigation.

Structure Follows Strategy

A principle that organizational structure should be designed to facilitate the strategic objectives the organization seeks to achieve.