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If the Required Reserve Ratio Is 0

Question 81

Multiple Choice

If the required reserve ratio is 0.2, the level of deposits is $1,000, the level of currency held by the public is $100, the level of excess reserves is $100, the level of money market funds is $1,000 and the level of time deposits is $2,000, then m2 is


A) 3.5.
B) 8.5.
C) 11.
D) 10.25.

Correct Answer:

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