If Bank Reserves Are 200, the Public Holds 400 in Currency

question 93

Multiple Choice

If bank reserves are 200, the public holds 400 in currency, and the desired reserve-deposit ratio is 0.25, the deposits are ________ and the money supply is ________.

• A)200; 600
• B)400; 800
• C)600; 1,000
• D)800; 1,200

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Definitions:

Euphemism

A word or phrase that is considered less distasteful than other words or phrases.

Radcliffe‑Brown

A distinguished figure in anthropology, recognized for pioneering the comparative method in social anthropology and focusing on the study of social institutions.

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The fear or apprehension concerning death and dying, which can impact an individual's behaviors, beliefs, and emotional well-being.

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An American sociologist known for his work in developing social exchange theory.