If the required reserve ratio is 10 percent,currency in circulation is $1,200 billion,checkable deposits are $1,600 billion,and excess reserves total $2,500 billion,then the excess reserves-checkable deposit ratio is

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The excess reserves-checkable deposit ratio is calculated by dividing excess reserves by checkable deposits. Here, $2,500 billion (excess reserves) divided by $1,600 billion (checkable deposits) equals 1.56.

If the Required Reserve Ratio Is 10 Percent,currency in Circulation