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

question 95

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 monetary base is

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

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Definitions:

Electrical Charge

A physical property that causes matter to experience a force when placed in an electromagnetic field, categorized as positive, negative, or neutral.

Sensory Neurons

Specialized neurons responsible for converting external stimuli from the environment into internal electrical impulses for the brain.

Sense Organs

Body parts responsible for receiving and processing sensory stimuli (eyes, ears, nose, skin, and tongue).

Spinal Cord

The spinal cord is a long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column. It transmits nerve signals from the brain to the rest of the body.