If Banks Hold No Excess Reserves, Checkable Deposits Total $1

question 80

Multiple Choice

If banks hold no excess reserves, checkable deposits total $1.5 billion, currency totals $400 million, and the required reserve ratio is 10%, then the monetary base equals

• A)$550 million.
• B)$1.54 billion.
• C)$1.9 billion
• D)$15 billion.

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Definitions:

Borderline

Often related to Borderline Personality Disorder, a mental health disorder characterized by unstable moods, behaviors, and relationships.

Histrionic

Pertaining to a personality pattern characterized by attention-seeking behavior, excessive emotionality, and a need for approval.

Narcissistic

Describes a personality trait characterized by an excessive preoccupation with oneself, a need for admiration, and a lack of empathy for others.

Antisocial

A behavior pattern characterized by a disregard for and violation of the rights of others, including a lack of empathy and a tendency towards aggressive or deceitful behavior.