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

question 97

Multiple Choice

If the desired reserve ratio is ten percent, currency in circulation is $400 billion, and chequable deposits are $800 billion, then the money multiplier is approximately ________.

• A) 2.5
• B) 1.67
• C) 2.0
• D) 0.601

---

Definitions:

Organizational Alienation

A state wherein employees feel estranged or disconnected from their work and the organization, often leading to a lack of engagement and productivity.

Mergers And Acquisitions

The process of consolidating companies or assets through various types of financial transactions.

Self-Identity

An individual's conception and expression of their own individuality or group affiliations, such as cultural identity or personality.

Acquiring Firm

A business entity that purchases or takes over another company, often to expand its operations, market share, or capabilities.