There Is $5,000,000 of Currency in Econland,all Held by Banks

question 82

Multiple Choice

There is $5,000,000 of currency in Econland,all held by banks as reserves.The public does not hold any currency.If the banks' desired reserve-deposit ratio is 20%,then the money supply equals

• A) $5,000,000.
• B) $6,000,000.
• C) $10,000,000.
• D) $20,000,000.
• E) $25,000,000.

---

Definitions:

Lateral Hypothalamus

An area at the side of the hypothalamus that appears to function as a start-eating center.

Social Approval

The act of seeking or gaining acceptance, validation, or positive recognition from others within a social context.

Hypothalamus

A small but crucial part of the brain involved in many functions, including hormone release, regulation of body temperature, and hunger control.

Physical Needs

Basic requirements for human survival, such as food, water, shelter, and sleep.