If Bank Reserves Are 200, the Public Holds 400 in Currency

question 93

Multiple Choice

If bank reserves are 200, the public holds 400 in currency, and the desired reserve-deposit ratio is 0.25, the deposits are ________ and the money supply is ________.

• A)200; 600
• B)400; 800
• C)600; 1,000
• D)800; 1,200

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Definitions:

Utricle

The utricle is a part of the inner ear involved in detecting linear movements and the position of the head in relation to gravity, aiding in balance.

Saccule

Saclike cavity in the vestibule of the vertebrate inner ear; contains sensory receptors for gravitational equilibrium.

Exteroreceptors

External sensors in the body that detect stimuli from the outside world, such as light, sound, and touch.

Perception

Processing of sensory stimuli that occurs when the brain interprets information being received from the sensory receptors.