If Currency Held by the Public Equals $100 Billion, Reserves

question 43

Multiple Choice

If currency held by the public equals $100 billion, reserves held by banks equal $50 billion, and bank deposits equal $500 billion, then the monetary base equals:

• A) $50 billion.
• B) $100 billion.
• C) $150 billion.
• D) $600 billion.

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Definitions:

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Content Validity

The extent to which a test or assessment measures all aspects of the concept or content it intends to evaluate.

Construct Validity

Refers to the extent to which a test measures what it claims to measure and accurately assesses the concept it is intended to assess.

Structured Interviews

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