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

question 118

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 monetary base is ________.

• A) $480 billion
• B) $480.8 billion
• C) $80 billion
• D) $80.8 billion

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