If the Desired Reserve Ratio Is Ten Percent, Currency in Circulation

question 134

Multiple Choice

If the desired reserve ratio is ten percent, currency in circulation is $400 billion, chequable deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply is ________.

• A) $8000 billion
• B) $1200 billion
• C) $120 billion
• D) $8400 billion

---

Definitions:

Social welfare programs

Government-provided services designed to ensure a basic standard of living for all citizens, including healthcare, education, and income assistance.

Socialist capitalism

A mixed economic system that incorporates elements of both socialism and capitalism, often featuring private enterprise alongside significant government regulation and social welfare policies.

State/welfare capitalism

An economic system where the state undertakes commercial (i.e., for-profit) economic activity and where the welfare policies protect and benefit the economic and social well-being of the population.

Conflict theorists

Sociologists who focus on the power differentials and struggles between various social classes, often analyzing the causes and consequences of conflict in society.