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

question 178

Multiple Choice

If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $1,000 billion,and excess reserves total $1 billion,then the monetary base is

• A)$400 billion.
• B)$401 billion.
• C)$500 billion.
• D)$501 billion.

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Definitions:

Segregation Of Duties

A risk management strategy where critical tasks are divided among different people to prevent fraud and errors.

Physical Controls

Security measures used to protect tangible assets, such as inventory and equipment, from theft, misuse, or damage.

Human Resource Controls

Systems and procedures put in place to regulate personnel activities and ensure compliance with organizational policies and laws.

Cash Receipts

Money received by a business or organization, typically documented during accounting periods.