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

question 31

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 excess reserves-chequable deposit ratio is ________.

• A) 0.001
• B) 0.10
• C) 0.01
• D) 0.05

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Definitions:

Financial Provider

An individual or institution that supplies funds or economic support to others.

Parental Support

The assistance and guidance parents provide to their children for emotional, physical, and financial needs.

Middle Age

A period in adult life that ranges approximately from the ages of 45 to 65, often characterized by stability, reflection, and transitions in personal and professional roles.

Masculine Ideal

A culturally and socially constructed concept of male behavior and traits that are considered desirable or appropriate within a society.