If the Required Reserve Ratio Is 15 Percent,currency in Circulation

question 114

Multiple Choice

If the required reserve ratio is 15 percent,currency in circulation is $400 billion,checkable deposits are $800 billion,and excess reserves total $0.8 billion,then the M1 money multiplier is

• A)2.5.
• B)1.67.
• C)2.3.
• D)0.651.

Understand how to calculate accounts payable and receivable balances.

Determine expected cash collections and disbursements within a given period.

Calculate differences between cash receipts and cash disbursements.

Understand the concept of budgeting raw material purchases based on production requirements.

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