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

question 110

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 25%,then the money supply equals

• A) $5,000,000.
• B) $6,250,000.
• C) $10,000,000.
• D) $20,000,000.
• E) $25,000,000.

---

Definitions:

Cost-Per-Contact Basis

A method of advertising budget allocation that considers the cost of reaching an individual member of the target audience.

Indirectly Paid

A form of compensation or remuneration not made directly through monetary payments but through other benefits or services.

Wasted Coverage

Advertising or marketing effort that reaches an audience not interested in the product, resulting in inefficient spending.

Personal Selling

A sales approach involving direct interaction between a salesperson and a potential customer, usually aimed at persuading the customer to make a purchase.