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

question 157

Multiple Choice

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $1,000 billion,and excess reserves total $1 billion,then the currency-deposit ratio is

• A)0.25.
• B)0.50.
• C)0.40.
• D)0.05.

---

Definitions:

Low-context Cultures

Societies where communication is explicit, and understanding does not heavily rely on context, background, or non-verbal cues.

Written Word

The expression of ideas, thoughts, or information through the act of writing, as opposed to spoken communication.

Personal Pledges

Personal commitments or promises made by an individual.

Social Communication Model

A framework that describes the exchange of messages between individuals in a social context, including the methods and barriers to communication.