If the Required Reserve Ratio Is 10 Percent,currency in Circulation

question 198

Multiple Choice

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $800 billion,and excess reserves total $0.8 billion,then the currency ratio is

• A) 0.25.
• B) 0.50.
• C) 0.40.
• D) 0.05.

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Definitions:

Manufacturing Capacity

The maximum amount of products a facility can produce over a given period under normal working conditions.

Quality Cost Report

A document outlining the expenses related to maintaining product quality, which encompasses prevention, appraisal, and failure costs.

Prevention Costs

Money spent on measures aimed at preventing defects in products or services prior to their occurrence.

Appraisal Costs

Costs associated with measuring, evaluating, or auditing products or services to ensure they meet quality standards.