Question

14) If the desired reserve ratio is ten percent, currency in circulation is $400 billion, and chequable deposits are $800 billion, then the money multiplier is approximately ________.

A) 2.5

B) 1.67

C) 2.0

D) 0.601

16) If the desired reserve ratio is ten percent, currency in circulation is $400 billion, chequable deposits are $800 billion, and excess reserves total $0.8 billion, then the excess reserves-chequable deposit ratio is ________.

A) 0.001

B) 0.10

C) 0.01

17) If the desired reserve ratio is ten percent, currency in circulation is $400 billion, chequable deposits are $800 billion, and excess reserves total $0.8 billion, then the monetary base is ________.

A) $480 billion

B) $480.8 billion

C) $80 billion

D) $80.8 billion

D) 0.05