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valkas [14]
2 years ago
13

If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and e

xcess reserves total $0.8 billion, then the money supply is ________ billion. A) $8000 B) $1200 C) $1200.8 D) $8400
Business
1 answer:
Viefleur [7K]2 years ago
4 0

Based on the information given the money supply is B) $1200.

Using this formula

Money supply=Currency in circulation+ Checkable deposits

Where:

Currency in circulation=$400

Checkable deposits=$800

Let plug in the formula

Money supply=$400+$800

Money supply=$1,200

Inconclusion the money supply is B) $1200.

Learn more about money supply here:brainly.com/question/3625390

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