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

question 118

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 monetary base is ________.

• A) $480 billion
• B) $480.8 billion
• C) $80 billion
• D) $80.8 billion

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Definitions:

Classical Conditioning

An educational procedure involving the repeated pairing of two stimuli, resulting in a reaction initially caused by the second stimulus being provoked by only the first stimulus over time.

Observational Learning

The process of acquiring knowledge, behaviors, or skills by watching and imitating the actions of others, without direct instruction or personal experience.

Instrumental Learning

Instrumental Learning, also known as Operant Conditioning, is a learning process wherein behavior is modified through reinforcement or punishment.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.