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

question 122

Multiple Choice

If the required reserve ratio is 10 percent,currency in circulation is $1,200 billion,checkable deposits are $1,600 billion,and excess reserves total $2,500 billion,then the M1 money multiplier is

• A)2.5.
• B)1.7.
• C)7.3.
• D)0.73.

---

Definitions:

Short Form Prospectus Distribution

A simplified process for companies to distribute securities, utilizing a shorter prospectus that provides essential information without excessive detail.

Preliminary Prospectus

An initial document offering securities for sale, disclosing important information but subject to amendment.

Seasoned Equity Offering (SEO)

A process whereby a company that is already publicly traded issues additional shares to raise capital, often indicating established operational history.

Share Repurchase Program

A share repurchase program is when a company buys back its own shares from the marketplace, reducing the amount of outstanding stock to increase shareholder value.