If the required reserve ratio is 10 percent,currency in circulation is $400 billion,checkable deposits are $800 billion,and excess reserves total $0.8 billion,then the money supply is ________ billion.

Question

Quizplus · Accepted Answer

The money supply is the sum of currency in circulation and checkable deposits, which is $400 billion + $800 billion = $1200 billion.

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