If the Required Reserve Ratio Is One-Third,currency in Circulation Is

question 104

Multiple Choice

If the required reserve ratio is one-third,currency in circulation is $300 billion,checkable deposits are $900 billion,and there is no excess reserve,then the monetary base is

• A)$300 billion.
• B)$600 billion.
• C)$333 billion.
• D)$667 billion.

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Definitions:

Side Effects

Unintended consequences of an action or decision that can be either beneficial or harmful.

Settlement Cost

The expenses incurred in the resolution of a dispute, transaction, or litigation, including legal fees, negotiation costs, and any payments made to settle the case.

Threat

a potential cause of harm or adverse effect on someone or something.

Raise Request

A formal or informal petition for an increase in salary or wages.