Multiple Choice
If bank reserves are 200, the public holds 400 in currency, and the desired reserve-deposit ratio is 0.25, the deposits are ________ and the money supply is ________.
A) 200; 600
B) 400; 800
C) 600; 1,000
D) 800; 1,200
Correct Answer:
Verified
Correct Answer:
Verified
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