If the Required Reserve Ratio Is 5 Percent,currency in Circulation

question 34

Multiple Choice

If the required reserve ratio is 5 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)2.72.
• C)2.3.
• D)0.551.

---

Definitions:

Points

In typography, a unit of measurement used to specify the size of text; one point is equal to 1/72 of an inch.

Units of Measurement

Standardized quantities used for expressing the amount, dimension, or capacity of physical quantities.

Drag-and-drop Editing

A user interface interaction technique that allows users to select and relocate objects with a mouse or other pointing device.

Text

A string of words or characters communicated via books, spoken communication, or electronic media.