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

question 178

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 monetary base is

• A)$400 billion.
• B)$401 billion.
• C)$500 billion.
• D)$501 billion.

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