If the Required Reserve Ratio Is One-Third,currency in Circulation Is

question 26

Multiple Choice

If the required reserve ratio is one-third,currency in circulation is $300 billion,and checkable deposits are $900 billion,then the level of excess reserves in the banking system is

• A)$300 billion.
• B)$30 billion.
• C)$3 billion.
• D)0.

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Definitions:

Downward Communication

The transmission of messages from higher to lower levels in an organization.

Lower Level

Refers to a position or status that is considered to be of lesser importance or rank within a hierarchy or structure.

Network of Contacts

A group of acquaintances, professionals, and colleagues that an individual can consult, cooperate with, or seek favors from in professional matters.

Formal Channels

Official, recognized pathways for communication or procedures within an organization, often documented and established by policy.