If M = the quantity of money, m the money multiplier, MB the Monetary Base, C = Currency, D = Deposits, R = Reserves, RR equals required reserves, and ER = Excess reserves, then RR would equal:
A. MB
B. D – C
C. M/MB
D. R - ER
Answer:D
If M = the quantity of money, m the money multiplier, MB the Monetary Base, C = Currency, D = Deposits, R = Reserves, RR equals required reserves, and ER = Excess reserves, then RR would equal:
A. MB B. D – C C. M/MB D. R - ER