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

question 220

Multiple Choice

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $800 billion,and excess reserves total $0.8 billion,then the money supply is ________ billion.

• A) $8000
• B) $1200
• C) $1200.8
• D) $8400

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Definitions:

White

A color perceived when all wavelengths of visible light are reflected by a surface, symbolically associated with purity and cleanliness.

Colored Part

The iris, which is the colored part of the eye surrounding the pupil and controlling the amount of light entering the eye.

Rods

The receptor cells in the retina that are sensitive to light but not very useful for color vision.

Color Vision

The ability of the visual system to differentiate various wavelengths of light, enabling us to see colors.