Multiple Choice
In Ugoland,the money supply is $8 million and reserves are $1 million.Assuming that people hold only deposits and no currency,and that banks hold no excess reserves,then the reserve requirement is
A) 14 percent.
B) 12.5 percent.
C) 8 percent.
D) None of the above is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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