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

question 148

Multiple Choice

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $1000 billion,and excess reserves total $1 billion,then the currency ratio is

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

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