If Banks Hold No Excess Reserves, Checkable Deposits Total $1

question 80

Multiple Choice

If banks hold no excess reserves, checkable deposits total $1.5 billion, currency totals $400 million, and the required reserve ratio is 10%, then the monetary base equals

• A)$550 million.
• B)$1.54 billion.
• C)$1.9 billion
• D)$15 billion.

---

Definitions:

Hydraulic Steering-assist

A system that uses hydraulic pressure to make steering the vehicle easier, aiding the driver by reducing the effort needed to turn the steering wheel.

Psi

Pounds per square inch, a unit of pressure used to gauge the pressure within a system, such as air or fluid pressure.

Steering Effort

The force required by the driver to turn the steering wheel, which can vary depending on the vehicle's steering system design.

Loaded

A term referring to a condition where a component, system, or vehicle is under operational stress or carrying a load.