When Currency Is Equal to $100 Billion and Reserves Are

question 10

Multiple Choice

When currency is equal to $100 billion and reserves are equal to $200 billion, and we know that the money multiplier is equal to 2.5, then the money supply will be equal to ________.

• A) $750 billion
• B) $250 billion
• C) $300 billion
• D) $450 billion

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Definitions:

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The ability to identify and categorize objects, persons, places, etc., through the process of seeing.

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