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

question 127

Multiple Choice

If the desired reserve ratio is ten percent, currency in circulation is $400 billion, chequable deposits are $1000 billion, and excess reserves total $1 billion, then the excess reserves-chequable deposit ratio is ________.

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

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Definitions:

Time Of Day

A specific moment during the 24-hour cycle, often used to reference the suitability or natural occurrence of events.

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Principles concerning the distinction between right and wrong or good and bad behavior.

Virtuous Behavior

Actions that conform to moral and ethical principles; these behaviors are often associated with goodness and integrity.

Morality

Guidelines that differentiate between what is considered ethically correct and incorrect or between positive and negative conduct.